- AI infrastructure demands could consume 12% of US electricity by 2028
- Semiconductor export controls risk $7B+ in annual industry losses
- Texas emerges as AI energy hub with wind/solar-powered data centers
- Bipartisan push for federal AI framework amid China competition
Washington policymakers faced urgent calls to action during Thursday’s landmark hearing, where Silicon Valley’s most influential executives outlined the geopolitical stakes of artificial intelligence development. OpenAI CEO Sam Altman emphasized that current energy infrastructure investments will determine whether America leads what he called the third industrial revolution.
The Senate committee grappled with conflicting priorities: maintaining semiconductor export controls to limit China’s progress while avoiding overregulation that could push allies toward Beijing’s technological ecosystem. AMD CEO Lisa Su cautioned that restrictive policies might accelerate rival Chinese chip development within five years, citing her company’s $1.5 billion revenue shortfall from recent trade rules.
Energy demands dominated technical discussions, with Altman revealing details about OpenAI’s Abilene, Texas data center complex. The 300-acre Stargate facility – powered by 850MW of renewable energy – highlights growing industry reliance on regions combining deregulated power markets with sustainable infrastructure. Energy Department projections suggest AI could triple US data center electricity consumption by 2028, requiring innovation in modular nuclear reactors and high-efficiency cooling systems.
Partisan divides surfaced over climate policies impacting AI growth. Republican senators criticized White House emissions regulations slowing natural gas plant approvals, while Democrats highlighted how Trump-era research cuts weakened America’s AI talent pipeline. Microsoft President Brad Smith proposed a compromise: federal tax credits for AI companies using carbon-neutral energy sources.
The hearing concluded with rare bipartisan agreement on national security priorities. Hawaii Democrat Brian Schatz summarized the challenge: We’re not racing for profit margins – we’re racing to prevent authoritarian AI ecosystems from rewriting the rules of global governance.New export controls taking effect June 15th will test this fragile consensus, particularly for Nvidia’s $5.5 billion China-market chips now restricted under Biden-era rules.
