The United States is simultaneously pursuing three of the most energy-intensive buildouts in its history: hyperscale data center construction for AI compute, the reshoring of advanced manufacturing, and the expansion of defense production capacity. Each alone would strain existing grid infrastructure. Together, they represent a structural challenge that current energy policy is not prepared to meet.
The Demand Side
Data center energy consumption is projected to double or triple within the decade. Reshored semiconductor fabrication, battery manufacturing, and advanced materials production each require reliable baseload power that intermittent sources cannot provide. Defense industrial base expansion — driven by munitions production shortfalls exposed by the Ukraine conflict — adds another layer of demand that cannot be deferred.
The Supply Gap
The permitting, regulatory, and capacity barriers that prevent the construction of critical energy and industrial infrastructure are well documented. What is less well understood is the compounding effect: every delay in generation capacity delays the buildout that depends on it, which delays the economic and strategic returns that justify the investment.
For the complete analysis with projections, see the full report at IAMT.
The American Founders Institute is the research division of the American Founders Society.