Trump is touting AI data centers. What about power?
Jan 24, 2025
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Christa Marshall, Energy Technology Editor at POLITICO's E&E News, dives into the ambitious $500 billion Stargate initiative, where tech giants plan to create AI data centers across the U.S. She discusses the implications of increased energy demands from these centers and how they may affect the U.S. energy grid. The conversation also touches on the political tensions surrounding energy policies and the recent nominations for key energy positions in Trump’s administration, shedding light on the intersection of technology, energy, and national security.
Trump's Stargate initiative involves a $500 billion investment to develop AI data centers, emphasizing the need for increased power supply amidst rising energy demands.
The initiative faces criticism for its environmental implications and potential contradictions with Trump's wider clean energy policies, highlighting tensions between government and private sector interests.
Deep dives
Launch of Stargate Initiative
Stargate represents a significant investment of $500 billion aimed at developing AI infrastructure and data centers in the U.S. This initiative, backed by major companies such as OpenAI, Oracle, and SoftBank, aims to enhance the U.S.'s position in the AI sector. Construction on some data centers has already started, with a notable facility in Abilene, Texas, boasting buildings of half a million square feet. The initiative is rooted in earlier efforts by OpenAI CEO Sam Altman to form a coalition focused on AI development well before the current administration took office.
Trump's Energy Policy and AI Demand
President Trump has indicated a strong interest in supporting the Stargate initiative, viewing it as integral to his energy policy and national competitiveness. He is likely to push for executive orders aimed at facilitating the development of these data centers, emphasizing the need for increased power supply to meet AI demand. The energy consumption of data centers is projected to significantly rise, potentially accounting for 12% of U.S. electricity demand by 2028. Trump's approach may include promoting fossil fuel production and investing in clean coal to address this soaring demand from AI technologies.
Criticism and Controversy Surrounding Stargate
The Stargate initiative has sparked criticism from political figures and environmental advocates concerned about its environmental impact and Trump's contradictory energy policies. Critics like Chuck Schumer have pointed out the inconsistency in promoting AI while rolling back clean energy initiatives. Notably, Elon Musk has publicly questioned the financial viability of the companies involved in Stargate, leading to a dispute with OpenAI's CEO, Sam Altman. This tension illustrates the complex interplay between government energy policy and private sector innovation, especially as stakeholders navigate the challenges of meeting increased energy demands.
President Donald Trump brought the leaders of OpenAI, Oracle and SoftBank to the White House this week, and announced they will spend $500 billion to build AI data centers. But Trump’s photo-op moment was quickly dissed online by his Silicon Valley confidante, Elon Musk. On POLITICO Tech, E&E News energy technology editor Christa Marshall joins host Steven Overly to discuss the new AI initiative, called Stargate. Plus, all three of President Donald Trump’s nominees to lead the Department of Energy, the Department of Interior, and the Environmental Protection Agency are advancing to a full Senate vote.