The United States' biggest obstacle in the technology race with China may not be Beijing but growing domestic resistance to new data centers and the power infrastructure needed to run them, according to Palantir Chief Technology Officer Shyam Sankar.
Speaking at Palantir's American Builder Summit, Sankar told Fox News Digital that the U.S. risks slowing its own technological progress through internal opposition rather than falling behind China. "The proximate issues are definitely going to be power and backlash against data centers," he said. "The only threat to AI generating prosperity for America is suicide, not homicide."
The U.S. and China are both pouring billions into artificial intelligence development, viewing the technology as central to economic growth, military capability and geopolitical influence. Winning that competition depends on a massive buildout of data centers, power generation and transmission infrastructure.
What the Left Is Saying
Progressive critics have focused on the environmental and community impacts of rapid data center expansion. Residents in communities proposed for new facilities have raised concerns about electricity demand, water consumption, noise pollution, increased traffic and whether utility customers will ultimately bear the costs of grid expansion.
Some Democratic lawmakers have proposed restrictions or moratoriums on new data centers pending further study of their effects. The issue has emerged as a campaign topic in 2026 midterm races, with candidates in battleground states like Pennsylvania running advertisements highlighting economic and environmental concerns about the projects.
Environmental advocates argue that AI companies should demonstrate tangible community benefits before receiving approvals for large-scale infrastructure, rather than simply invoking national security arguments to bypass local review processes.
What the Right Is Saying
Conservative voices have largely embraced Sankar's framing that domestic opposition threatens American competitiveness more than Chinese advancement. They point to the submarine-parts manufacturer example Sankar cited: a factory using Palantir software cut production planning time from two weeks to under an hour, freeing capacity for an additional shift.
"There is no one on that shift who thinks, 'Hey, I got my job because of AI,' but that's actually what happened," Sankar said at the summit, which featured factory workers, healthcare professionals and military personnel demonstrating software they built to solve workplace problems.
Tech industry supporters argue that excessive regulation of data center construction cedes ground to China without addressing legitimate concerns. They contend that pairing new facilities with dedicated power generation can address grid strain while creating jobs and economic activity in host communities.
What the Numbers Show
The U.S. and China each invest billions annually in AI development, though precise comparative figures vary by metric used. The data center industry has expanded rapidly to support increasing computing demands from advanced AI systems.
Some projects have been delayed or canceled due to local opposition, according to multiple industry reports. Lawmakers in several states have introduced legislation proposing various restrictions on new facility construction.
Fox News polling has found that voters increasingly view large technology companies as a greater threat than government surveillance, though specific poll numbers were not included in Sankar's remarks at the summit.
Sankar cited what he called "fear-mongering from social media feed" as driving public skepticism about AI's economic benefits, arguing: "How many people have actually, at the front line, experienced AI and how it's changed their job versus how many people are imbibing that fear?"
The Bottom Line
The debate over data center expansion reflects a broader tension between national competitiveness goals and local concerns about infrastructure impacts. Whether domestic opposition to new facilities represents a genuine threat to American AI leadership—or a legitimate exercise of community governance—remains contested.
Sankar argued the AI industry has become overly focused on pursuing artificial general intelligence rather than deploying existing technology across the economy. "The AI we have is powerful enough that it should have created more prosperity and value," he said. "The only reason it hasn't yet is not a failing of the technology, it's a lack of our national will to push and invest in diffusing the technology through our economy."
Watch for further developments in state-level legislation on data center permitting, as well as how 2026 midterm candidates in competitive districts address the issue. The outcome could shape whether U.S. infrastructure keeps pace with the demands of advanced AI systems.