Why America’s AI Dream Is Failing to Launch

In 2022, American dominance in AI looked almost unassailable. The U.S. led in advanced models, semiconductors, capital and talent. Its closest competitor, China, appeared to be reeling from export controls that cut it off from the world’s most advanced process nodes, chips and memory technologies.

Four years later, the tide seems to be turning. Chinese models have gained major global token share; American technology giants are eyeing Chinese logic and memory chips; and America’s grand AI ambitions face growing public backlash.

During the first three months of 2026, local opposition blocked or delayed roughly $130 billion in data center projects. This spring, 71% of Americans surveyed opposed the construction of a data center near where they live. Texas, the fastest-growing state in data center construction, has frozen new grid-connected projects until further impact studies are completed. Data centers have become a bipartisan sleeper issue for the election cycle.