O’Leary Warns US Data Center Delays Hand AI Advantage to China
“Shark Tank” star and investor Kevin O’Leary warned on June 19 that China will “win all the wars” — economically and militarily — if the United States continues to stall data center production amid a wave of state-level delays and moratoriums. Speaking to Fox News, O’Leary argued that modern data center technology has resolved the environmental concerns that critics have raised, while China aggressively builds out its AI infrastructure with fewer regulatory hurdles.
The Warning
O’Leary told Fox News Digital that today’s air-cooled technology and advanced chips have rendered obsolete the heat, noise, and water concerns that fueled opposition to data centers two decades ago. “If everybody talks about data centers, too much heat, too much noise, too much water, all that, that was 20 years ago,” he said. “Today’s technology is completely different.”
His core message was stark: “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 noted that China is “beating us because they’re getting more power sooner” and building data centers to train their own AI systems.
The Data Center Landscape
According to Statista, the United States currently has more than 4,000 data centers as of April 2026, compared to just over 300 in China — fewer than the UK and Germany. However, raw facility count does not capture the full picture. Nearly half of US AI data centers planned for 2026 have been canceled or delayed, creating a 7 GW capacity gap, as reported by Tech Insider.
Nvidia CEO Jensen Huang highlighted the construction speed disparity in November 2025, stating: “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.”
State-Level Resistance
A key structural conflict has emerged between the Trump administration’s push for rapid data center development and state-level resistance. Twenty-seven states are advancing data center legislation on energy costs and moratoriums, pushing back on federal permitting efforts, according to MultiState.us.
In March 2026, Sen. Bernie Sanders (I-Vt.) and Rep. Alexandria Ocasio-Cortez (D-N.Y.) introduced the AI Data Center Moratorium Act, calling for a pause on new construction. Ocasio-Cortez said in a statement: “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. We must choose humanity over profit.”
Maine is poised to become the first state to enact a data center construction moratorium, pausing new projects until November 2027.
Federal Pushback
President Donald Trump signed an executive order in July 2025 titled “Accelerating Federal Permitting of Data Center Infrastructure,” directing agencies to reduce regulatory burdens. However, the order does not preempt state permitting requirements, zoning laws, or energy regulations.
On June 10, Sen. Tom Cotton (R-Ark.) sent a letter to Acting Attorney General Todd Blanche requesting a Department of Justice investigation into whether foreign actors are attempting to shape US public opinion and policy against data centers. “Recent reports show that Communist China is attempting to influence our policy and public opinion on data centers,” Cotton told Fox News Digital. “The reason is obvious: They want to kneecap our processing power to win the AI race.”
Allegations of Foreign Influence
A report by the Bitcoin Policy Institute, published by Fox News in May 2026, alleges that a network funded by tech tycoon Neville Roy Singham — a US expatriate living in Shanghai — has coordinated with Chinese state media to produce anti-data-center content. The report specifically names CodePink, Tricontinental, and Peoples Dispatch as part of this network. The House Ways and Means Committee, House Oversight Committee, and House Select Committee on the Chinese Communist Party are investigating whether some of these nonprofits should register under the Foreign Agents Registration Act.
Sam Lyman, head of research at the Bitcoin Policy Institute, said: “Ensuring that AI is safe and empowers American workers must be a top priority for US policymakers. But the discussion about AI safety should not be influenced by geopolitical rivals, especially China.”
Economic Stakes
Judge Glock, director of research at the Manhattan Institute, told Fox News Digital that data centers are driving a significant portion of economic 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. Without continued growth in data centers, we would have higher unemployment and lower incomes.”
O’Leary’s Personal Stake
O’Leary has a direct financial interest in the outcome of this debate. His company, O’Leary Digital Limited, is backing the proposed Stratos Project — a $100 billion, 40,000-acre AI hyperscale data center campus in Box Elder County, Utah. The project was approved by county commissioners on May 4 amid significant local opposition over water use and environmental impact. On June 7, O’Leary agreed to shrink the project after Utah Senate President J. Stuart Adams demanded a 75% reduction in its physical footprint. A lawsuit was filed against the project on June 6.
What’s Next
The tension between federal and state authorities over data center regulation is likely to intensify. The DOJ investigation requested by Sen. Cotton could lead to FARA registrations or legal action against nonprofits. The Sanders-Ocasio-Cortez moratorium bill is unlikely to pass a Republican-controlled Congress but could influence state-level policy.
As O’Leary’s warning underscores, the outcome of this debate will shape the global AI landscape for decades. If the US cannot resolve its regulatory gridlock, China may indeed surpass the United States in AI infrastructure capacity, with profound implications for economic competitiveness and national security.