Throughout my career in national security, I have seen threats evolve alongside technology. Our adversaries are constantly looking for new vulnerabilities to exploit.
Artificial intelligence is the latest and perhaps most consequential example. It is already changing how governments collect intelligence, defend critical infrastructure, secure supply chains and conduct military action. At the same time, it is giving adversaries new ways to target American institutions, businesses and citizens.
China understands the stakes. Beijing is reportedly preparing a nearly $300 billion financing package to support data centers, power generation and other AI infrastructure. By the end of 2025, China had more than 13.7 million data center racks and 42 major advanced-computing clusters.
China’s leaders recognize that the country that leads in AI will have an advantage in military readiness, intelligence collection, cyber defense, and a host of other areas critical to national security. It will also have greater influence over the rules and values that shape the global economy.
The U.S. still has significant advantages. American institutions produced 40 notable AI models in 2024, compared with 15 from China. U.S. private investment in AI reached $109.1 billion, nearly 12 times China’s total. But we must not mistake a lead for a guarantee. Chinese models have rapidly narrowed the performance gap, and China leads the world in AI publications and patents.
Staying ahead will require more than continued ingenuity from American researchers and companies. AI depends on immense computing power, which in turn requires data centers, advanced chips, reliable energy and modern transmission systems.
The Department of Energy projects that data centers could account for as much as 12% of U.S. electricity consumption by 2028, up from 4.4% in 2023. Meeting that demand will be difficult, but failing to meet it would carry far greater consequences.
AI can help detect cyberattacks before they disrupt power grids, financial systems or communications networks. It can strengthen military logistics, accelerate advanced defense systems, and support operations where GPS is unavailable. These capabilities are increasingly central to future crisis preparedness.
New York’s technology companies, universities, research institutions, financial markets and skilled workforce give it the foundation to lead in AI. But this requires recognizing that the physical infrastructure is as important as the innovation itself.
New Yorkers deserve affordable electricity and a reliable grid. Communities should understand how data center projects will affect them and share in the benefits. Developers should contribute to building the infrastructure their facilities require.
This means clear standards, thoughtful planning and investment in new energy generation and transmission. It should not be an excuse to delay the infrastructure America needs.
New York can protect ratepayers and communities while continuing to build. A predictable permitting process, enforceable requirements for developers, and expanding the state’s energy supply can support responsible, long-term growth.
What policymakers must not do is hamstring the state’s innovation while foreign adversaries like China move forward with urgency. In national security, lost time matters. The countries with the greatest computing capacity will attract more talent, produce more breakthroughs, and deploy more capable systems.
America has the talent and innovative strength to remain the world’s technology leader. But we must build the infrastructure to match. AI leadership will be determined not only by who develops the best ideas, but by who has the capacity to put them to work.
New York must act with the same clarity of purpose.
Townsend served as homeland security advisor to President George W. Bush. She serves as a national security advisor to the American Edge Project.
