China is swiftly building the data centers and energy infrastructure required to support artificial intelligence. This progress is prompting concerns that Beijing’s swift construction capabilities might bring it closer to rivalling America’s lead in AI infrastructure.
U.S. Still Leads in Numbers
The U.S. maintains a significant lead in the number of data centers. According to the Stanford Institute for Human-Centered Artificial Intelligence’s 2026 AI Index, based on Cloudscene data, the U.S. had 5,427 data centers in 2025 compared to China’s 449. However, this count does not reflect differences in facility size, computing power, or utilization.
“We know that China is far behind, but we also know that they are moving at great speed,” said China expert Gordon Chang.
Chang noted the U.S. advantage might be hard to overcome if America continues its pace. The growing opposition to data-center development could slow this expansion.
President Donald Trump echoed this concern, urging communities to support new projects as China could gain from anti-data center movements. Trump highlighted the job creation and tax revenue that could result from new data centers.
Power and Infrastructure Challenges
Vice President JD Vance warned that the U.S. risks losing the AI race to China if infrastructure development does not keep pace. Vance pointed out America needs to enhance its power generation capacity to support data centers and ensure affordable electricity for residential users.
Vance also addressed the widening electricity gap, noting China generates about three times more power than the U.S. He stressed the need to simplify regulations for building power plants and infrastructure.
China’s Infrastructure Expansion
China is reorganizing its computing resources under the “East Data, West Computing” initiative. This plan allocates more computing power to western regions, leveraging available land and renewable energy to reduce costs.
Government reports indicate construction of over 30 data centers is underway in Horinger, Inner Mongolia. Significant projects are also in progress in Zhongwei, Ningxia, and Guian New Zone.
Geopolitical Implications
The U.S.-China Economic and Security Review Commission has observed China’s aggressive push into AI infrastructure as a competitive frontier. Commissioner Mike Kuiken emphasized China’s speed, unconstrained by regulatory hurdles, as a competitive edge. However, he noted China’s struggle to access advanced chips.
Kuiken underscored the complexity of infrastructure competition, stating it’s about building the necessary support for large-scale AI models. He also described local opposition to data centers in the U.S. driven by concerns over resources and development.
The U.S. has strengths in AI development. The Stanford Index reported 59 significant U.S. AI models in 2025 compared to China’s 35. U.S. private AI investments also vastly surpass China’s.
“We are building things in the U.S. faster than we have in a long time,” Kuiken said, highlighting continuing efforts to overcome infrastructure constraints.
The competition to build the necessary infrastructure swiftly is intensifying, demanding agile and strategic responses. It’s not just about developing AI models, but who can construct the essential power, data centers, and networks quickly and efficiently.