America's leading challenge in competing with China on artificial intelligence may not be Beijing itself, but rather domestic issues such as power grid limitations and growing resistance to new data centers, according to Shyam Sankar, chief technology officer of Palantir Technologies.

Speaking at Palantir's American Builder Summit on July 31, 2026, Sankar emphasized, "The proximate issues are definitely going to be power and backlash against data centers."

Sankar, whose company develops software for the Pentagon, intelligence agencies, and major manufacturers, argued that the U.S. risks slowing its own technological progress more than falling behind China. He noted that while AI technology is powerful enough to have created more prosperity and value, the lack of national will to invest in and diffuse the technology through the economy has hindered its full potential.

"There is no one on that shift who thinks, 'Hey, I got my job because of AI,' but that's actually what happened," Sankar said, highlighting AI's impact on job creation.

Addressing public concerns about AI data centers, 'CyberGuy' Kurt Knutsson referenced a Fox News poll showing 70% opposition to new AI data centers. He stressed that modern data centers are clean and have minimal impact on local water and electricity supplies. Knutsson underscored the importance of transparent communication to help communities understand the benefits of these facilities and for the U.S. to maintain leadership in AI against global competitors.

The American Builder Summit also showcased Palantir's American Tech Fellowship, where workers from manufacturing, healthcare, and defense sectors demonstrated AI applications they developed for their jobs.

Sources