Kevin O'Leary, Jensen Huang Warn US Falling Behind China In Data Center Construction: 'Need To Cut The Red Tape' - NVIDIA (NASDAQ:NVDA)
NvidiaNvidia(US:NVDA) Benzinga·2025-12-07 06:12

Core Insights - The U.S. is lagging behind China in data center construction due to lengthy permit approval processes, which can take years, while China is able to build a new data center every month [1][2] - There is a pressing need for the U.S. to reduce bureaucratic hurdles and expedite construction to remain competitive in sectors like AI, energy, and cloud infrastructure [2][3] - The U.S. data centers currently consume a record 5% of total electricity demand, which is straining the power grid [5] Group 1: Industry Challenges - The permitting crisis is a significant barrier to competition in the data center sector, with lengthy approval times hindering development [2][3] - Energy demand is a critical issue, as the rapid growth of data centers is putting additional pressure on the already stretched U.S. power grids [5] Group 2: Comparative Analysis - The U.S. has 4,165 data centers, the highest number globally, compared to only 381 in China, highlighting the scale of U.S. infrastructure [5] - China is enhancing its data center expansion by reducing energy costs by up to 50% through subsidies, which supports domestic chip usage and growth [8]