Shark Tank investor Kevin O'Leary has sounded the alarm on America's lagging infrastructure in the artificial intelligence sector, calling for a rapid expansion of domestic data center capacity. With China aggressively investing in AI and compute power, O'Leary warns that the U.S. risks falling behind in what he describes as the 'defining technological race of the 21st century.'
U.S. Compute Power at Risk
O'Leary highlighted the critical role data centers play in supporting the AI revolution, emphasizing that without adequate infrastructure, American innovation could be stifled. 'AI is driving the future of global competitiveness, and compute power is the foundation of AI,' he stated. 'If we don't act now, China will dominate this space.'
China is outpacing us in AI infrastructure investment, and that’s a direct threat to American economic sovereignty.
According to industry estimates, China currently operates nearly 40% of the world's largest data centers, with its government heavily subsidizing the sector. O'Leary argued that the U.S. must prioritize domestic data center construction to ensure it remains a leader in AI development and reduce reliance on foreign-controlled infrastructure.
Policy Changes Needed
O'Leary urged policymakers to streamline permitting processes and incentivize private investment in data centers. He also stressed the importance of energy independence, advocating for nuclear and coal-powered facilities to meet the sector's substantial energy demands. 'We can't afford to let gridlock or misguided environmental policies hold us back,' he said.
The call for expanded data center capacity comes as AI technologies increasingly permeate industries from healthcare to defense, raising national security concerns. O'Leary's warning underscores the broader challenge facing the U.S. as it seeks to maintain its technological edge amid growing global competition.