AI eats data and the US is running low

Time for some data center diplomacy?

2 Min Read

There is no race. There are no rivals. The US is already miles ahead when it comes to data centers. Like WAY ahead.

Data centers are the beating heart of AI supply chains, and the US has the lion’s share — more than 5,000 as of March, outpacing the rest of the world combined.

But uneasy lies the head that wears a crown. Demand for AI is skyrocketing, and the US is hitting some hard limits. Land? Finite. Power grid? Strained. Supply-chain headaches? Still lingering.

Chart showing data centers in various countries.

Something’s gotta give, and fast.

If the US can’t clear these roadblocks, “it will need an overflow option abroad,” warns Jared Cohen, president of global affairs at Goldman Sachs. In other words, the US might have to share its AI data center pie.

Cue the potential for “data center diplomacy.” Sounds nice on paper, but it could hand competing nations the leg up they’ve been waiting for.

There are no clear answers for Uncle Sam. Maybe the crown is just too heavy?