Decentralized Infrastructure Allows America to Compete on AI—Greg Osuri

Artificial intelligence (AI) is rapidly transforming society, impacting work, governance, and daily life. Its increasing integration into critical sectors like healthcare and defense necessitates robust supporting infrastructure, a challenge currently unmet. The energy consumption of AI is escalating dramatically; U.S. data centers consumed approximately 200 terawatt-hours in 2024, and projections for 2028 range from 165 to 326 terawatt-hours – enough to power a significant portion of U.S. households. This surging demand strains existing power grids, hindering AI development.

The United States currently leads in AI, but China’s rapid advancements, exemplified by its DeepSeek model, pose a significant challenge. China’s coordinated and well-funded approach threatens to surpass the U.S. in AI dominance unless infrastructure shortcomings are addressed. The reliance on massive, centralized data centers presents vulnerabilities: they are expensive, geographically limited, and create single points of failure, making them susceptible to power outages and cyberattacks.

A shift towards decentralized systems offers a more resilient and scalable solution. Smaller compute clusters can leverage localized renewable energy sources, utilizing underutilized computing power in homes and communities. This approach enhances resilience against crises and cyberattacks by distributing compute across numerous nodes.

To foster this transition, several key steps are crucial: incentivizing distributed infrastructure, funding research and development for distributed computing, opening federal land and institutions for edge computing powered by clean energy, and streamlining support for next-generation energy sources like advanced nuclear grids. These measures would reduce permit delays and utilize underused assets.

Decentralization not only solves energy bottlenecks but also democratizes access, empowering smaller players to develop and deploy AI models independently of Big Tech. This fosters competition and innovation. The future of AI depends on the underlying infrastructure; prioritizing a decentralized, resilient, and transparent system is vital for the U.S. to maintain its leadership in this transformative technology. Proactive action, not further studies, is needed to ensure the U.S. shapes the future of AI according to its values.