The AI revolution runs through America’s heartland
By Matthew Kandrach
Real Clear Wire
President Trump is building an American economy designed to outpace our adversaries, shore up our national security, and put American workers first. To carry out that mission, he has prioritized U.S.-led innovation and unleashed American energy. As a result, states that are embracing President Trump’s energy dominance agenda are positioned to reap the economic benefits of the AI revolution and manufacturing renaissance while liberal states are being left behind.
The proliferation of data centers needed to support AI development, along with myriad announcements to onshore manufacturing supply chains, are leading to surging energy demand. When companies choose locations for these energy-intensive operations, they prioritize one thing above all: the availability of reliable, affordable power in the near term for the long term.
States aligning their energy policy with President Trump’s vision, particularly in the Southeast, are leveraging all-of-the-above energy solutions to capture the competitive advantage. They’re building new power plants, investing in both traditional sources like natural gas and advanced generation like nuclear, and strengthening critical grid infrastructure.
The value proposition of these projects is two-fold: they meet surging AI and manufacturing demand and strengthen U.S. technological leadership, while keeping power reliable and affordable for local customers. Power companies in these areas are able to attract private investment by working closely with their state regulators to plan years ahead, allowing them to build and connect new power plants much faster than in other parts of the country where the system is more fragmented. This integrated approach gives them a major advantage over utilities in deregulated markets where multiple companies handle different pieces of the electricity system, and over tech companies trying to build their own power generation.
The benefits of these new data centers and manufacturing facilities extend far beyond the projects themselves. Rural communities that once faced an uncertain future now find themselves at the epicenter of unprecedented opportunity with ripple effects throughout local economies – demand for suppliers, substantial tax revenue, and good-paying jobs. These communities are experiencing firsthand how policies that support America’s energy dominance translate into economic prosperity.
Meanwhile, liberal states that have prioritized climate policies over energy reliability face a starkly different reality. In their rush toward renewable-only strategies, these policymakers have sidelined traditional power sources that provide electricity when the sun doesn’t shine and the wind doesn’t blow. They’re simultaneously shuttering coal and natural gas plants and blocking critical infrastructure like pipelines – hampering the very sources of reliable, affordable power that AI infrastructure and advanced manufacturing demand, leaving customers to either face surging energy bills or lose out on economic development opportunities.
The consequences of the politically-driven march toward less reliable, intermittent energy sources are clear. California regularly asks residents to conserve electricity during heat waves to prevent grid overload. New England faces winter reliability warnings as natural gas constraints collide with declining baseload capacity. New York has struggled to bring major renewable projects online due to cost overruns and permitting delays, even as demand continues rising, and New Jersey’s Democratic machine may lose the governor’s mansion due to failed energy policies.
These liberal states now confront a troubling trifecta: the growing threat of rolling blackouts, soaring energy costs for families and businesses, and a grid increasingly unable to meet the demands of a modern economy. They should take a page out of the Southeast playbook and reverse course on their failed policies or see even more families and businesses vote with their feet – fleeing to states that are making investments, building infrastructure, and implementing plans to reliably and affordably meet growing demand.
President Trump is taking action to ensure America’s energy landscape provides the definitive edge we need to win the AI race, reshore manufacturing, crush competition from China, and bolster our economic and national security over the long term. President Trump’s energy revolution isn’t just powering America’s technological future – it’s ensuring that future is driven by American innovation, powered by American energy, and built in the American heartland. The states that understand this reality today will be the ones leading the U.S. economy in the decades to come.
Matthew Kandrach is president and co-founder of CASE, Consumer Action for a Strong Economy, a free-market oriented consumer organization.
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