Nvidia [-0.53%] CEO Jensen Huang issued a stark warning that China’s ability to rapidly build AI infrastructure could give it a decisive advantage over the United States, even as American companies maintain technological superiority in chip design.
Speaking at the Center for Strategic and International Studies in late November, Huang highlighted a dramatic disparity in construction timelines. Building a data center in the United States “from breaking ground to standing up an AI supercomputer is probably about three years,” he said. By contrast, China “can build a hospital in a weekend,” underscoring the speed advantage that could prove critical as AI development accelerates.[fortune +2]

Energy Capacity Tilts Toward China
Beyond construction speed, Huang pointed to a puzzling energy imbalance. China has “twice as much energy as we have as a nation, and our economy is larger than theirs,” he noted. While U.S. energy capacity remains relatively flat, China’s continues to climb, with the country adding 400 gigawatts of power capacity in 2024 alone—ten times what the United States added.[fortune +3]
The energy gap has emerged as a critical concern among tech leaders and policymakers. China’s total installed power capacity reached 3,349 gigawatts by December 2024, with 57 percent from zero-emissions sources. Multiple sources confirm China now produces more than twice as much electricity as the United States.[climateenergyfinance +1]

Regulatory Red Tape Slows U.S. Development
Investor Kevin O’Leary echoed Huang’s concerns in recent statements, warning that bureaucratic delays are hampering American competitiveness. “It takes years just to get permits approved,” O’Leary said, adding that “meanwhile, they build a data center every month”. Data center construction in the U.S. typically requires 18 to 36 months after permits are secured, with permitting itself taking six to 18 months.[enterprisezone +3]
President Donald Trump has responded with executive orders aimed at streamlining federal permitting for AI infrastructure, designating data centers as national priorities and directing agencies to expedite reviews for projects exceeding $500 million. The administration’s AI Action Plan seeks to enable construction on federal lands by the end of 2025.[perkinscoie +2]
Alphabet [goog +1.16%] CEO Sundar Pichai has also called for national AI regulation, warning that over 1,000 state-level bills could create a “confusing patchwork” that weakens U.S. competitiveness against China.[ibtimes +1]
Despite these infrastructure challenges, Huang maintained that Nvidia remains “generations ahead” of China in AI chip technology. However, he cautioned against complacency, adding that “anybody who thinks China can’t manufacture is missing a big idea”. The coming year is expected to see over $100 billion in U.S. data center investments as companies race to meet surging AI demand