Experts Discuss Importance of Data Centers to Innovation
Data Centers are essential to responding to the AI demand and keeping up with foreign countries, panelists say.
WASHINGTON, June 8, 2026 – The United States is facing competition from China in the race to establish data center dominance.
In a webinar hosted by the Center for Strategic and International Studies on Thursday, experts discussed the importance of data centers for global competitiveness and national security.
Data centers are emerging as a backbone of internet usage, especially with the rise of Artificial Intelligence. To respond to AI demand, states are giving more capital to these data centers and investing in innovation.
The panelists discussed the importance of data centers in an AI-driven environment, while also acknowledging the challenges centers are facing. The experts included: Aalock Mehta, CSIS Director of the Wadhwani AI Center; Joseph Majkut, CSIS Director of the Energy, Security and Climate Change Program; and Phillip Luck, Director of the CSIS Economics Program.
Mehta said that there is a winner-takes-all race when it comes to developing AI, leading countries to race for innovation. Data centers are crucial for improving computing to compete with other countries in AI innovation.
Mehta explained that a lack of computing power “would give Chinese companies the opportunity to close the gap between their most powerful models and our most powerful models.” Data centers are needed to bring reliable tools to the marketplace and compete with foreign countries.
Currently, the United States is ahead, having the most data centers of any country, but China has also been developing fast. Sixty percent of data centers scheduled to be built in the U.S. are experiencing delays due to supply chain constraints, permit issues, and access to reliable power.
Majkut noted that, to help increase the number of data centers being built, the federal government must enable the states to meet the demand rather than force it on communities. The data center debate has national implications, and so those building the centers may need to rethink their approach.
