FIRST ON FOX BUSINESS – A new White House study warns that electricity prices may spike due to artificial intelligence demand if the United States does not boost energy output. The White House Council of Economic Advisors is expected to release a report on Thursday that found energy needs for AI data centers will exceed the total energy consumed by many sectors to make some construction products. "The International Energy Agency (IEA) estimates that by 2030, U.S. data centers will consume more electricity than production of aluminum, steel, cement, chemicals and all other energy-intensive goods combined," according to a copy of the report first obtained by FOX Business. 'THIS IS THEFT': ECONOMIST WARNS OF AI-GENERATED ADS ON SOCIAL MEDIA USING HIS LIKENESS TO SCAM USERS The report also warns that the U.S. is losing the energy race with China. "China currently produces about twice as much power as the United States and is investing aggressively in nuclear power. Based on these investments, China is projected to become the largest nuclear power producer in the world by 2030," the report says. "If half of U.S. businesses engage in widespread use of AI by 2034, the annual productivity growth of labor could be 1.5 percentage points higher starting in 2034 than it would otherwise be without widespread AI adoption. This boost in labor productivity could, in turn, increase GDP growth by 0.4 percent in 2034," the report adds. "To effectively compete for AI dominance, the United States must focus on rapid growth of low-cost domestic baseload generation. U.S. growth in electricity generation has averaged close to zero over the last 20 years, while China’s generation expanded at annual rates of 5 to 10 percent or more." According to the White House Council of Economic Advisors, "The rise in demand for AI and cloud computing capabilities is already driving up electricity use in the United States. After two decades of growth below one percent per year, the demand for electricity grew by two percent in 2024."

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