Trump’s attacks on green energy are big trouble for data centers, AI

The US data center industry has warned that the Trump administration’s crackdown on renewable energy could slow its growth and undermine Washington’s goal to win the global artificial intelligence race.

Renewables have become a flashpoint since Donald Trump re-entered the White House, with his administration suspending clean energy developments on federal land, pausing federal loans and last month cancelling high-profile projects such as Equinor’s $5 billion Empire Wind site.

For tech companies struggling to secure reliable energy supplies to power and train AI, a clampdown on renewables could create power bottlenecks, drive up costs and push operators towards dirtier energy, experts said.

Simon Ninan, senior vice-president at Hitachi Vantara, which builds equipment and infrastructure for data centers, said the Trump administration’s “antagonistic approach” towards renewable energy could make it “impossible to satisfy the data growth that’s happening.”

“Strategically, the US could risk undermining its current pole position in the global AI race . . . China, on the other hand, has taken a proactive approach towards grid modernisation and efficient power distribution.”

Energy shortages could “result in cancellation or delays in data center build-outs or infrastructure upgrades,” he said.

The Trump administration has warned that losing the AI race to China is a bigger threat to the world than global warming and has advocated increasing the use of fossil fuels to power them. But experts warn it will be difficult to meet surging demand without adding a lot more renewable energy capacity, which is faster and cheaper to deploy than building gas power plants.