China targets US AI buildout: Testimony
Witnesses at a congressional panel testified that China is employing bot networks, state media, and US-based groups to foster public opposition to American AI infrastructure and data centers. These efforts, focusing on concerns like electricity demand and environmental impact, have allegedly contributed to data center delays and moratoriums in 14 US states, impacting billions in investment. Experts warned of foreign influence while also acknowledging legitimate local concerns about data center development.
During a House Foreign Affairs subcommittee hearing on covert foreign influence operations, witnesses testified that China is actively working to shape public opposition to American artificial intelligence infrastructure and data centers. Sam Lyman, head of research at the Bitcoin Policy Institute, stated that Beijing uses complex bot networks and media campaigns, including around 200 accounts from a network of 200,000 suspected fake Chinese accounts on X, to turn American public opinion against AI and data centers.
Lyman explained that these campaigns highlight issues such as electricity prices, strain on power grids, and the environmental costs associated with AI infrastructure. He noted an alleged "documented double standard," where Chinese state media promotes these arguments to American audiences while Beijing subsidizes up to half of the energy costs for AI data centers within China. Additionally, Lyman accused a network of US-based nonprofit organizations, reportedly supported by businessman Neville Roy Singham, of amplifying messages critical of the American technology industry.
These influence campaigns, according to Lyman, have affected 21 initiatives across 14 US states, leading to delays or reductions in approximately $23.6 billion in proposed AI infrastructure investment. Their impact reportedly includes 10 data center moratoriums, one permanent ban, and four rejected or abandoned projects. However, Lyman cautioned against attributing all opposition to foreign influence, acknowledging that American communities have genuine concerns regarding electricity, water consumption, land use, and utility costs.
Matthew Johnson, a senior fellow at the Jamestown Foundation, added that the Chinese Communist Party seeks to cultivate relationships with influential American institutions to sway public debate and government decisions, using incentives like market access and funding while employing tactics like visa restrictions and market pressure against those who resist. Subcommittee Chairman Bill Huizenga and ranking Democrat Sydney Kamlager-Dove emphasized the need for transparency in foreign influence operations. The article also briefly touched on India's expanding AI and data center capacity and the global implications of US-China competition in technology.