US Digital Leadership: Infrastructure, AI Energy, and Cable Security

The Facts -

This article is part of Access Partnership’s ‘A Digital Manifesto’ initiative, aimed at guiding US digital policy during the initial 100 days of the Trump administration.

The Stargate Project is gearing up to invest USD 500 billion in AI infrastructure over the next four years, emphasizing the critical role of digital infrastructure in America’s economic and national security framework. This move aligns with global trends, as nations worldwide, including Europe and Southeast Asia, are enhancing their data centres and cloud capabilities. The US faces a competitive international environment, necessitating decisive action to sustain its leadership.

For the US to remain a leader in the digital arena, prioritizing digital infrastructure investments is crucial. This will serve as the backbone for AI, cloud computing, and advanced technologies. However, challenges such as supply chain issues, energy demands for AI workloads, and risks to subsea cables require a strategic approach. Leveraging domestic strengths, bolstering international alliances, and neutralizing emerging threats are vital strategies.

Prioritizing Infrastructure and Energy

The Trump administration's first 100 days offer a pivotal opportunity to secure US digital supremacy. Key priorities include enhancing domestic infrastructure, ensuring energy availability for AI workloads, and protecting subsea cable systems. Progress in these areas will fortify the US digital ecosystem and elevate its global standing.

Domestic and International Infrastructure Investment

Investment in secure, resilient digital infrastructure, particularly data centres, is imperative. As AI-driven demand rises, the expansion of data centre capacity and network resilience becomes increasingly urgent. Companies like Taiwan Semiconductor Manufacturing Company (TSMC) and Intel are already making significant investments in the US, underscoring the urgency for digital infrastructure expansion.

Policies should incentivize domestic data centre investments through tax incentives and grants, particularly in underserved areas. Simultaneously, expanding US infrastructure investments globally can enhance technology exports, build alliances, and reduce trade deficits. The private sector has already invested over USD 330 billion in AI since 2013, with an additional USD 300 billion committed globally for 2025.

Addressing supply chain vulnerabilities is also critical. The semiconductor shortage highlighted the US's reliance on foreign suppliers. To mitigate these risks, diversifying supply chains and fostering domestic production of critical components are essential steps.

Ensuring Energy for AI Workloads

AI innovation relies on stable, affordable energy. With data centre electricity consumption projected to rise 30% by 2026, energy reliability is a national priority. Energy Secretary Chris Wright plans to expedite energy permits, bolster grid resilience, and explore alternatives like nuclear power to support AI workloads.

Investments in advanced energy solutions, such as small modular reactors and grid resilience, are needed. Strengthening domestic mining and processing of critical minerals will reduce dependence on foreign suppliers. The US should also drive energy-efficient data centres to sustain scalable AI workloads.

Securing Subsea Cables

Subsea cables, vital for transmitting global data, face threats from human activities and potential sabotage. These cables' vulnerability was highlighted by the 2024 Baltic Sea incidents, prompting accusations against Russia. Such events emphasize the importance of subsea infrastructure protection.

Collaborating with international bodies like the ICPC and regional organisations is crucial for aligning priorities and coordinating responses. Streamlining cable landing permits and enhancing terrestrial connectivity can improve infrastructure resilience.

Investment in digital infrastructure is crucial for AI, cloud computing, and telecommunications advancement, all of which underpin national security and economic growth. To maintain its digital leadership, the US must act swiftly amidst global uncertainties.

For expert guidance on navigating digital infrastructure policies, contact Abhineet Kaul at [email protected]

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