The rise of high-performance computing, artificial intelligence, and advanced semiconductor manufacturing has created extraordinary opportunities for innovation. Yet it has also created an extraordinary appetite for energy. Training large-scale AI models requires vast amounts of power, advanced fabs demand stable grids to sustain operations, and supercomputers consume electricity at levels comparable to small cities. These pressures are reshaping debates on energy security, climate policy, and industrial strategy. Erik Hosler, an expert on technology and infrastructure, recognizes that the energy challenge is inseparable from the future of technological leadership. His perspective reflects a reality that innovation will falter if power systems cannot sustain it.

This challenge is not only technical but also political and environmental. Policymakers must balance the need for reliable power with the urgency of climate commitments. The U.S. seeks to expand advanced computing to secure competitiveness, but doing so will strain already strained grids. Meeting this challenge requires a strategy that integrates technology policy with energy planning to sustain growth while safeguarding resilience.

Why Energy Matters in Compute Strategy

Every generation of compute demands more energy. As AI models grow larger and fabs scale to advanced nodes, electricity needs climb sharply. For chipmaking, stable power is not optional. A momentary disruption can halt production and destroy valuable wafers. For AI, datacenters running around the clock generate unprecedented demand.

Energy has therefore become a limiting factor in the pace of innovation. Without sufficient capacity, new facilities cannot operate, and data centers cannot scale. Energy strategy is not separate from compute strategy. It is the foundation that determines whether investments in fabs and AI infrastructure will succeed.

The Strain on National Grids

National grids are already under pressure from population growth, vehicle electrification, and renewable transitions. Adding high-performance compute and new fabs compounds the strain. Facilities may require hundreds of megawatts each, often concentrated in regions where infrastructure is already stretched.

This demand can create local bottlenecks. Communities near new fabs may experience competition between industrial and residential users for limited capacity. Datacenter construction in certain regions has already triggered debates about water and energy availability. Without proactive planning, advanced compute could exacerbate grid instability.

The Climate Policy Dilemma

Energy demand from advanced compute collides with national climate goals. The U.S. has committed to reducing emissions, expanding renewable generation, and transitioning away from fossil fuels. Yet renewable infrastructure does not always expand at the same pace as compute demand.

It creates a policy dilemma. Relying heavily on fossil fuels to power fabs and datacenters undermines climate targets, but waiting for renewables to scale risks slowing innovation. Policymakers must strike a balance between near-term reliability and long-term sustainability. Incentives for clean energy investment near hubs of compute activity may provide part of the solution.

Innovation and Energy

The future of compute cannot be separated from the economics of energy. If the costs to power facilities exceed the value of what they produce, the system is unsustainable. Erik Hosler shares, “It must impact society at large. The value of the computations it performs exceeds the cost to build and operate the computer.” His observation underscores that advanced compute must be judged not only on performance but also on whether its energy footprint delivers net benefit to society.

This insight suggests that efficiency must be a policy priority. Innovations that reduce energy per operation, whether through chip design, cooling systems, or datacenter optimization, will determine whether compute growth is compatible with climate and economic goals.

Policy Options for Sustainable Growth

Policymakers have several tools to address the energy demands of advanced compute. One option is to co-locate new facilities with renewable energy sources, ensuring direct access to clean power. Another is to expand incentives for energy-efficient technologies, from advanced cooling to AI-optimized grid management.

Regulation may also play a role. Standards for energy efficiency in fabs and data centers could ensure that facilities internalize their environmental costs. At the same time, subsidies for clean energy investment near major compute hubs could align industrial and climate goals. The challenge is to design policies that sustain innovation without triggering backlash from energy-intensive industries.

Aligning Industry and Government

Industry must be an active partner in addressing the energy challenge. Private firms can invest in efficiency, support grid upgrades, and coordinate with utilities to plan capacity. Some companies have already committed to renewable power purchase agreements for their datacenters and fabs, signaling recognition of their role in sustainability.

Government coordination provides scale and direction. Federal and state programs can fund grid modernization, support research into efficient computing, and streamline approvals for clean energy projects. By working together, industry and government can align incentives to reduce risks and sustain competitiveness.

The Global Perspective

The energy demands of advanced computing are not unique to the U.S. Other nations face similar dilemmas as they expand AI and semiconductor production. China, Europe, and Asia are all grappling with how to reconcile compute growth with climate commitments. This global context matters because energy-intensive industries are increasingly mobile. Nations with reliable and affordable power will attract investment, while those with unstable grids may lose competitiveness.

International cooperation also plays a role. Agreements on emissions, efficiency standards, and clean energy investment can create a more level playing field. By leading in sustainable compute, the U.S. can shape global norms and strengthen its role in technology governance.

Building a Resilient Energy–Computing Future

The energy demands of advanced compute highlight a fundamental truth. Technology cannot outpace infrastructure. Without resilient and sustainable power, the most advanced fabs and data centers cannot deliver their potential. The U.S. must therefore integrate energy planning with technology strategy at every level.

This integration will not be simple. It requires long-term investment in grids, renewables, and efficiency. It demands coordination between government, industry, and utilities. Most importantly, it requires recognition that energy is not a backdrop but a crucial factor in national competitiveness.

The next era of computing leadership will not be determined by chips alone. It will be determined by whether nations can sustainably power those chips. By aligning energy policy with technological ambition, the United States can ensure that advanced computing strengthens its economy, supports climate goals, and secures its role in global leadership.