How is the AI race affecting the electrical industry?

Phillips: The construction of new data centers is currently providing strong momentum for us. After all, one third of the investment in a data center involves electrical products. Overall, this expansion is also a major driver of economic growth.

Where are the bottlenecks?

Phillips: Primarily in grid capacity. According to our forecast, electricity demand from data centers could increase by up to 300 percent by 2030. We have not seen such a leap in a century. The U.S. power grid is highly decentralized and complex, which makes expansion challenging. That is why data centers are currently being built as close as possible to natural gas sources — for example in Texas or Nevada.

In addition, there are supply chain bottlenecks: in gas turbines, transformers, and grain-oriented electrical steel (a specialized steel required for transformers, editor’s note). And finally, there is a shortage of skilled workers. In the grid sector alone, we need an additional half a million workers. That is why we have just launched a campaign highlighting career opportunities in the electrical industry.

The Trump administration presented its “AI Action Plan” last year. How do you assess the strategy?

Phillips: It is certainly an ambitious plan. We particularly welcome the movement in the area of permitting procedures. In December of last year, the House of Representatives passed the so-called SPEED Act, which shortens and standardizes the approval process for building new facilities. We hope it will be passed quickly by the Senate.

How does the U.S. AI strategy differ from China’s?

Phillips: The United States relies on the “firepower” of the private sector. The approach is to create incentives to ensure that the domestic tech sector remains at the forefront of the race. The Chinese are very effective at drawing up plans and moving quickly, backed by the full power of the government.

Which point would you personally like to see added to the “AI Action Plan”?

Phillips: We are currently discussing a “tariff incentive proposal” with the administration. It concerns products and materials that are not sufficiently available domestically, such as motors. Companies that have to import these goods often face higher costs due to tariffs. It would be desirable to provide rebates or other incentives in such cases.