Gavekal Technologies

The US data center boom is facing a power crunch. So far, delays and cancellations due to electricity shortages have been sporadic but by some point in 2028, they could force a significant slowdown in data center construction. It will be important for the US to figure out how to better use batteries and distributed renewables generation to make power demand and supply more flexible. China is already ahead in this effort.

Beijing’s proposed AI export controls aim to protect national security and core technologies while preserving open-source commitment and overseas commercialization. Their impact will depend heavily on implementation. The many ambiguities in the draft rules could discourage Chinese firms’ international activity and Chinese open models’ overseas adoption, at a time when American open-weight alternatives are expanding.