China is going all-in on artificial intelligence. Recently, Beijing revealed that it’s converting thousands of old data centers and other idle spaces into one-person companies tasked with developing and innovating AI.
China’s investment speaks volumes. Artificial intelligence is the driver behind the latest technological revolution, rewriting the rules of global economic competition. China knows that nations that harness the power of AI will lead, while those that can’t will fall behind.
Right now, the United States is at risk of stumbling on AI. Not because of a lack of technological capabilities or energy resources, but because of a broken federal permitting system that makes it nearly impossible to build critical infrastructure.
PERMITTING REFORM IS ESSENTIAL FOR POWERING INNOVATION
China can rapidly develop new AI companies and spaces, while the U.S. sits around and waits for permits to be approved.
Alongside the rise of AI has come another trend: electricity demand is soaring at a rate not seen in decades. This is driven by AI development plus the growth of data centers, cloud computing, advanced manufacturing, and the broader electrification of the economy.
The Energy Information Administration forecasts the strongest four-year growth in electricity demand since 2000, with consumption expected to hit record highs in both 2026 and 2027. In some regions, the prospect of power shortages has become an urgent planning reality.
America needs to expand its electricity supply to meet the technological needs of the future. That means preserving its existing infrastructure as well as building new power plants, transmission lines, and other energy essentials. Otherwise, Americans will face higher electricity bills and lost economic opportunities.
This is where burdensome government permitting really gets in the way. Major energy and infrastructure projects often face years of redundant reviews, overlapping agency processes, and litigation intended to stop development. New energy projects take an average of four to five years to move through permitting, while transmission projects can take nearly a decade.
All this costs the U.S. economy up to $140 billion annually. At a time of rising bills and cutthroat global competition, that’s not acceptable.
Proposed reforms to the federal permitting system have been held hostage by partisan politics. If the U.S. is going to lead the AI revolution, legislators need to set aside their differences and pass bills that streamline the permitting process and allow for rapid electricity generation growth.
First, policymakers should clearly distinguish between permitting and compliance. Permitting should be a straightforward process that confirms a project meets environmental and safety standards — not an open-ended obstacle course. If a project satisfies legal requirements, it should proceed.
Second, the process must be simplified. Currently, major projects often require approval from multiple federal agencies, each with its own rules, timelines, and procedures. While statutory requirements may vary by project, a more centralized and coordinated system would go a long way toward reducing duplication and confusion.
Third, agencies should operate under strict deadlines. If the government fails to act within a specified time frame, permits should be considered approved except in clearly defined circumstances. People shouldn’t have to wait around for federal decisions that never seem to materialize.
Finally, the system must ensure certainty. Citizens should have the right to challenge projects when they demonstrate real, tangible harm. But parties without a direct stake in a project should not be allowed to file lawsuits solely to delay construction and hold critical infrastructure hostage.
The stakes extend beyond economic competitiveness. An electrical grid that cannot meet historic demand will fail families and businesses, endanger medical and emergency services, and hike electricity bills for those who can least afford it.
This can be a matter of life and death, as we experienced in my hometown of Sugar Land, Texas, five years ago. Three children and their grandmother died in a house fire as they tried to keep warm after rolling power outages were instituted across Texas.
A modernized federal permitting system would accelerate investment in energy, manufacturing, and technology. It would strengthen the electrical grid, support innovation, and keep costs down for consumers.
CAN WASHINGTON DELIVER HOUSING FOR FAMILIES?
Comprehensive permitting reform is not a Republican or Democratic priority. It’s an economic and national security imperative in a shifting global environment. America cannot lead on artificial intelligence if its infrastructure is stuck in the past.
The U.S. has the capital, workforce, and technology to pioneer the future of AI. What it needs now is a permitting system that operates at the speed of the 21st-century economy.
Pete Olson served in Congress on the Committee on Energy & Commerce. He was vice chairman of the House Energy Subcommittee on Energy, Climate, and Grid Security.
