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At close · Fri, Jul 31, 2026
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US infrastructure delays and AI guard rail timing spark China race concern

A US Senate hearing highlighted data center buildout controversy over water, electricity use, and environmental impact ahead of a deadline for new AI industry guard rails.

China could gain the upper hand in the global artificial intelligence race if the United States does not address delays in setting up AI infrastructure, according to discussion at a US congressional hearing reported by SCMP Economy.

US Senator Ted Cruz, chair of the Senate Committee on Commerce, Science and Transportation, said AI competition with China requires large capital investment to build the networks that will support future AI applications, with the hearing focusing on the role of strong, high speed connectivity.

Data and computing centers were a key point of focus, and SCMP Economy said rapid expansion in the US has faced opposition from communities concerned about water and electricity consumption, environmental impact, and, in some cases, a lack of public consultation.

A witness, Asad Ramzanali, director of AI and technology policy at the Vanderbilt Policy Accelerator, told the committee that the current data center buildout lacks a coherent governance strategy and has prompted backlash across China.

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