US Fossil‑Fuel Power Investment Overtakes China Amid AI Data‑Center Boom

In 2026 the United States is projected to spend about $50 billion on new fossil‑fuel electricity generation, surpassing China’s estimated $47 billion. The surge is driven by the expanding electricity needs of artificial‑intelligence data centers, with large hyperscalers such as Amazon Web Services, Microsoft Azure, Google Cloud and Meta requiring gigawatts of power. The increase reflects the Trump administration’s policy emphasis on fossil fuels and a reduced focus on renewables, slowing the country’s decarbonisation trajectory.

China, while still the world’s biggest coal consumer, continues to invest heavily in renewable capacity, installing a record 430 GW of wind and solar in 2025. The United Nations warns that AI‑related data centres could consume up to 3 % of global electricity by 2030, raising concerns that reliance on fossil generation could exacerbate greenhouse‑gas emissions and hinder climate goals.