Here's a scenario that keeps Treasury Secretary Scott Bessent up at night: China pulls ahead in artificial intelligence, and the United States becomes a technological also-ran. In his telling, that's not just a competitive setback. It's existential.
Speaking Tuesday at a Breitbart News policy discussion, Bessent made the case that the U.S. has no choice but to keep its foot on the gas in the AI race. 'Beating China — there is no day after tomorrow if China wins at this,' he said. 'If they were to pull ahead of us on AI, then nothing else matters.'
Bessent credited America's tech ecosystem, from its chip industry to its access to capital, for building the current lead. But he pushed back hard on any suggestion of hitting the brakes, even temporarily. 'We can't pause,' he said. 'You can't, because the Chinese won't pause. Even the North Koreans, they won't pause.'
It's a stark warning, but Bessent's frustration wasn't reserved for foreign adversaries. He had plenty of criticism for the folks building America's AI future, too.
Data Centers Get a Failing Grade in Community Relations
While defending the need for continued AI infrastructure expansion, Bessent didn't mince words about how data center companies, hyperscalers, and AI labs have handled local opposition. 'They have done a horrendous job reaching out to communities,' he said, acknowledging that this approach has fueled a backlash.
His grade for the industry's community outreach efforts? A 'D-minus.' Bessent said companies have 'taken their credibility to the edge' and need to rebuild trust by clearly explaining the economic benefits data centers bring. He also floated a more contentious idea, suggesting that some opposition is influenced by Chinese propaganda, while still insisting companies must take responsibility for communicating with residents.
The AI Boom Meets the Backlash
The stakes here are enormous. U.S. tech companies committed to more than $850 billion in data center leases in the first quarter of 2026 alone, a record as the AI infrastructure buildout accelerates. But the public is increasingly skeptical. A Gallup survey from May found that 71% of Americans oppose building data centers near their communities. For context, that's higher than the 53% who oppose nearby nuclear power plants.
President Donald Trump has jumped into the fray, urging communities to 'let Data Reign.' His comments have drawn criticism from both sides of the aisle, including from Alexandria Ocasio-Cortez (D-N.Y.) and fellow Republican Marjorie Taylor Greene.
The debate isn't just domestic. Last week, Nvidia Corp. (NVDA) CEO Jensen Huang called on G20 leaders to accelerate AI infrastructure and adoption, warning that excessive regulation and fear could cause countries to miss out on the next major technological revolution.
So there you have it: a Treasury secretary warning of existential stakes, an industry struggling to win hearts and minds, and billions of dollars pouring into infrastructure that many communities don't want. It's a complicated picture, and Bessent's message is clear — the U.S. can't afford to slow down, but it also can't afford to keep ignoring the people who live next door to the data centers.
Image via Shutterstock/ Maxim Elramsisy
