Author: Christian Herrmann
Source: n-tv.de - The US lacks power for new data centers, in China it's free
Publication Date: November 21, 2025
Summary Reading Time: 3-4 minutes
Executive Summary
While the USA leads in high-end chip development, energy availability is becoming the decisive bottleneck in the global AI race. China offers tech corporations free electricity and massive overcapacity, while US data centers sometimes wait years for power connections and American households pay the price through tripled electricity rates. This structural asymmetry could fundamentally shift the strategic AI competition despite the USA's technological advantage.
Critical Guiding Questions
- Does state-subsidized energy in China endanger fair global technology competition – or does it merely compensate for American regulatory advantages?
- What long-term risks arise when critical infrastructure bottlenecks slow private innovation and burden citizens with costs?
- Can decentralized market solutions solve the USA's energy crisis before centralistic planned economy gives China an insurmountable lead?
Scenario Analysis: Future Perspectives
Short-term (1 year):
Further electricity price increases in US metropolitan areas, accelerated Chinese AI projects due to energy advantages, first relocations of American tech corporations.
Medium-term (5 years):
Massive US investments in renewable energy driven by AI demand, possible loosening of American regulatory standards, Chinese dominance in AI application areas despite chip lag.
Long-term (10-20 years):
Fundamentally shifted technology geopolitics: China as AI application leader, USA as hardware supplier, Europe as regulatory actor without independent position.
Main Summary
Core Topic & Context
After the chip shortage, power supply becomes the new bottleneck in the AI race between USA and China. While American data centers wait for grid connections, China lures with free energy offers and massive overcapacity.
Key Facts & Figures
- $737 billion in data center investments through end of 2025 (Goldman Sachs)
- 80 gigawatts power demand – more than Germany's peak consumption
- Tripling of electricity prices for US households near data centers
- 356 gigawatts of new renewable capacity in China in 2024 alone
- 80-100% reserve capacity in China vs. shortages in USA
- 10-year lag for China in high-end chip development
- 3-year wait for power connection in Silicon Valley
Stakeholders & Affected Parties
Directly affected: US tech corporations (Amazon, Google, Microsoft), Chinese platforms (ByteDance, Alibaba, Tencent), American power suppliers and private households
Institutions: Local Chinese governments, California bureaucracy, US energy authorities
Industries: Semiconductor industry, energy sector, AI development, cloud computing
Opportunities & Risks
Opportunities: Acceleration of renewable energy in USA, innovation in energy efficiency, new business models for decentralized power supply
Risks: Loss of US technology leadership, further cost increases for consumers, dependence on Chinese AI infrastructure, competitive distortion through state subsidies
Action Relevance
Immediate measures: US companies must rethink energy strategies, examine possible relocations
Medium-term: Political reforms needed to accelerate grid expansion and approval processes
Time pressure: China is already actively using its energy advantage – window of opportunity for USA is closing
Quality Assurance & Fact-Checking
✅ Central figures verified - Goldman Sachs investment forecasts and power consumption data confirmed
✅ Nvidia CEO quotes authentic - Huang statements documented in Financial Times
⚠️ To verify: Exact amount of Chinese electricity subsidies and regional differences
Source Directory
Primary Source:
The US lacks power for new data centers, in China it's free - n-tv.de
Supplementary Sources:
- Bloomberg - Data center power supply USA
- Financial Times - Jensen Huang interview on China energy advantages
- Wall Street Journal - US energy infrastructure and AI power consumption
Verification Status: ✅ Facts checked on November 21, 2025