When Donald Trump took office as US President, he declared a real war on green energy. One of his first orders was to suspend approval of clean energy projects on federal lands, The Financial Times writes.
Federal loans for projects in the area have also been suspended, and in April the Bureau of Ocean Energy Management (BOEM) ordered Empire Offshore Wind to suspend construction of the $2.5 billion Empire Wind farm off the East Coast of the United States pending a review.
The shift away from renewable energy could create power supply problems for tech companies struggling to secure reliable energy supplies to power and train AI, experts say, driving up costs and potentially pushing operators to use dirtier energy.
Hitachi Vantara said the Trump administration’s “antagonistic approach” to renewable energy could make it “impossible to meet the [processing needs] of growing data volumes.” Strategically, the company noted, the U.S. risks undermining its current position as a leader in the global AI race, while China is aggressively modernizing its power grid and distributing energy efficiently. Energy shortages could “result in cancellations or delays in data center construction or infrastructure upgrades,” Hitachi Vantara warned.
Image source: James Whately/unsplash.com
The Trump administration has previously said that losing the AI race to China poses a greater threat to the world than global warming, advocating for increased use of fossil fuels to power data centers. In turn, experts warn that it will be difficult to meet growing demand without adding much more renewable energy capacity, which can be launched faster and cheaper than building gas-fired power plants.
Trump’s crackdown on renewable energy has alarmed some politicians who have committed to expanding wind power to meet future electricity demand. On Monday, attorneys general from 17 states filed a lawsuit against the Trump administration over its policy of curtailing wind power development in the United States.
The renewable energy ban also makes it harder for Equinix, Microsoft, Google, and Meta✴ to offset emissions and invest in renewable energy. “Demand [for renewable energy] is at an all-time high,” said Christopher Wellise, vice president of sustainability at Equinix, adding that, combined with the Trump administration’s restrictions, it could create energy supply challenges in the medium term.