Bloomberg Surveillance · Tuesday, August 25, 2026
China may have an advantage in the global AI arms race due to its government's ability to build data centers without local political opposition. Ted Morrison of Baird points out that China is ahead in terms of access to power, which is a critical factor. He identifies regulatory and political 'shenanigans' in the U.S. as a significant Achilles' heel, potentially hindering its own AI infrastructure development.
“What comes to mind is China, a government that can have data centers built and not care about what the local politics of it might be. Does that also exacerbate the arms race going on right now between the U.S. and China if China has the advantage of being able to build these data centers?”
“The biggest thing is access to power, and China's way ahead of the U.S., and that's our Achilles heel, is regulatory.”
“And political shenanigans.”