Kevin O'Leary, the investor and television personality known as 'Mr. Wonderful' on "Shark Tank," is warning that China is outpacing the United States in artificial intelligence development because data center projects continue to face delays across American states.
"The country that has the best AI will have the best economy and the best defense, the best military, and win all the wars because it's going robotically," O'Leary told Fox News Digital. He argued that China is gaining an advantage by expanding its power grid more quickly, which provides the electricity needed to run large-scale data centers.
Data centers serve as the physical infrastructure for AI systems, requiring massive amounts of electricity and specialized cooling technology. While opponents have raised concerns about utility costs for local residents and environmental impacts, O'Leary said modern data center technology has evolved significantly from earlier designs. "Today's technology is completely different in terms of the heat profile, in terms the water profile," he noted.
What the Left Is Saying
Sen. Bernie Sanders, I-Vt., and Rep. Alexandria Ocasio-Cortez, D-N.Y., introduced the Intelligence (AI) Data Center Moratorium Act in March, calling for a pause on new data center construction until safeguards are in place. "Congress has a moral obligation to stand with the American people and stop the expansion of these data centers until we have a framework to adequately address the existential harm AI poses to our society," Ocasio-Cortez said in a statement supporting the legislation. "We must choose humanity over profit." Sanders has also warned that artificial intelligence technology threatens working-class jobs.
Progressive critics argue that communities hosting data centers face increased electricity costs and environmental burdens without adequate compensation or regulatory oversight. They contend that AI development should not proceed unchecked until Congress establishes guardrails to protect workers and consumers.
What the Right Is Saying
President Donald Trump has pushed aggressively for expanded domestic data center production. Last July, he signed an executive order titled "Accelerating Federal Permitting of Data Center Infrastructure" directing federal agencies to reduce regulatory barriers slowing development.
Sen. Tom Cotton, R-Ark., sent a letter this week to Acting Attorney General Todd Blanche requesting federal investigators examine whether foreign actors are attempting to influence U.S. policy against data centers and AI development. "Recent reports show that Communist China is attempting to influence our policy and public opinion on data centers. The reason is obvious: They want to kneecap our processing power to win the AI race," Cotton told Fox News Digital.
O'Leary argued the competition with Beijing should concern Americans. "I think the key is that they're beating us because they're getting more power sooner, and then they're building these data centers to train their own AI," he said. He noted modern facilities can utilize varied energy sources including natural gas turbines, nuclear power, solar, and battery storage.
What the Numbers Show
According to data from Statista, the United States has more than 4,000 operational data center facilities as of April 2026. This represents a significantly larger installed base compared to reported figures for China, though Beijing has been expanding rapidly.
Judge Glock, director of research and senior fellow at the Manhattan Institute, cited economic data on AI investment's contribution to growth. "In the first six months Trump was in office, over 90% of all economic growth came from new computer and AI investment, and much of it came from data centers," he told Fox News Digital. He argued that continued data center expansion supports employment and local economies.
Nvidia CEO Jensen Huang offered a stark comparison of construction capabilities last November. "If you want to build a data center here in the United States, from breaking ground to standing up an AI supercomputer is probably about three years... they can build a hospital in a weekend," he said, referring to China's building pace.
The Bottom Line
The debate over domestic data center construction has become entangled with broader concerns about U.S.-China competition in artificial intelligence. Supporters of faster permitting argue that regulatory delays could allow Beijing to establish technological advantages with implications for national security and economic competitiveness. Opponents counter that unchecked AI development poses risks to workers, consumers, and communities that require legislative attention before expansion continues.
The Intelligence (AI) Data Center Moratorium Act remains pending in Congress. The Trump administration is expected to continue pushing for streamlined federal permitting processes, while critics on both sides are watching for any developments stemming from Cotton's request for a federal investigation into foreign influence over data center policy debates.