Investor Kevin O’Leary is urging the United States to significantly expand its data center infrastructure, arguing that doing so is essential to remain competitive with China in the rapidly evolving artificial intelligence race.

O’Leary has been vocal about what he sees as a growing imbalance between the two countries, describing China as a direct competitor and even an adversary in the AI space. He believes the U.S. is falling behind, not because of a lack of innovation, but because it does not have enough large-scale data centers to support the computing power AI requires.

He emphasized that artificial intelligence is no longer limited by ideas or software development, but by access to electricity and computing infrastructure. In his view, whoever can build and power the most data centers will ultimately dominate the next phase of technological advancement. He pointed out that China has been aggressively expanding its energy capacity, much of which is being used to support AI systems, while the U.S. faces delays due to regulations, permitting issues, and limitations within its power grid.

Because of this, O’Leary is pushing for faster development of U.S.-based data centers, including large-scale projects that can generate their own power instead of relying on already strained electrical grids. He argues that these facilities are critical not only for commercial AI growth but also for national security, as they provide the computing strength needed for defense and advanced technologies.

He also highlighted the challenges currently slowing progress in the United States, including lengthy approval processes and resistance from communities concerned about energy use and infrastructure strain. These hurdles, he says, are giving China an advantage as it builds out its capabilities at a much faster pace.

O’Leary believes the solution is to invest heavily in domestic infrastructure, streamline approvals, and prioritize energy production that can support massive computing demands. Without those changes, he warned that the U.S. risks losing its leadership position in artificial intelligence to China, which he says is already moving aggressively to scale its capabilities.

The push for more data centers reflects a broader concern among industry leaders about the future of AI development. As demand for computing power continues to rise, the ability to build and sustain the infrastructure behind it is becoming one of the most important factors shaping the global technology landscape.

Source: ABC15