U.S. officials and industry representatives warned that delays in developing the country’s artificial intelligence (AI) infrastructure could hinder American competitiveness against China in the global AI race. The concerns were voiced during a congressional hearing held on Thursday, days before the scheduled release of new regulatory guidelines for the AI sector.

Senator Ted Cruz, chairman of the Senate Committee on Commerce, Science and Transportation, highlighted the strategic importance of AI leadership, emphasizing the need for significant capital investment to build the advanced networks required to support emerging AI applications. The hearing centered on how AI is reshaping American infrastructure and the critical role of high-speed data networks and computing centers in maintaining a competitive edge.

As these data centers become central to AI advancement, opposition has grown in various U.S. communities over their environmental impact, water and electricity consumption, and perceived lack of public engagement. Asad Ramzanali, director of AI and technology policy at the Vanderbilt Policy Accelerator, described the current data center expansion as lacking a coherent national governance strategy. He noted widespread resistance manifesting in shelved projects, public protests, and petitions across the country.

In contrast, China has been aggressively expanding its computing infrastructure nationwide, with investments spreading beyond major tech hubs to smaller cities. However, this rapid growth has also sparked concerns about project redundancy and inefficient capacity use.

Ramzanali stressed the importance of fiber-optic networks, which facilitate data transmission to and from AI data centers, as essential infrastructure for broad AI benefits across the U.S. “For Americans to benefit from AI, every American must have access to that system,” he told lawmakers.

Jonathan Spalter, CEO of USTelecom and a representative of U.S. broadband providers, pointed to bureaucratic hurdles causing significant delays in infrastructure projects. He cited instances where routine upgrades, such as replacing a single fiber strand, could be postponed for months due to regulatory red tape.

To address these challenges, Spalter suggested implementing categorical exemptions for broadband construction activities and instituting automatic approvals for projects in pre-approved locations when regulatory agencies fail to act within designated timeframes. Such measures aim to streamline the deployment of critical AI infrastructure and mitigate delays that could undermine U.S. competitiveness in the fast-evolving technology landscape.