America's AI Action Plan - Implications for European Energy Industry

Yesterday, July 23, 2025 the White House has unveiled "Winning the Race - America's AI Action Plan". The plan is framed as a national imperative to win the global AI race, likened to the Space Race. The administration views AI as a multipronged revolution: industrial, informational, and cultural. And its ultimate objective is global technological dominance, supported by American innovation, deregulation, and infrastructure development.

The implications for Europe are manifold and should not be underestimated. In this article, we focus on the implications for the European energy sector.

Executive Summary: The plan outlines an aggressive national push for AI leadership powered by deregulated energy expansion, rapid infrastructure growth, and strategic global exports. For the European energy industry, this represents both a competitive challenge and a call to reposition for AI-linked energy demands, infrastructure investment, and geopolitical alignment.

What are the strategic challenges for the European energy sector?

• America’s plan fast-tracks permitting for data center and energy infrastructure, undercutting Europe’s more regulated climate-energy frameworks.
• AI-related energy consumption will soar, but Europe’s strict climate goals and slow permitting may deter investment in energy-hungry AI clusters.
• US labor incentives and training programs for energy infrastructure jobs threaten to siphon both talent and capital from Europe.

What are the geopolitical and policy risks?

• US export controls on AI and chips may pressure European firms to comply or limit access to key components.

• US aim to export their entire AI tech stack (hardware, models, software, cloud, energy) and make it the global default.

• Diverging values: US are promoting an AI governance model that explicitly rejects European-style regulation, potentially marginalizing EU standards.

• Europe's influence in global AI-energy standards is at risk as the US builds a global tech alliance around its infrastructure. 

Does the plan undercut Europe’s Green Deal?

• The plan

  • rejects climate constraints in favor of fast-tracked AI infrastructure growth,

  • emphasizes reliable baseload power: nuclear, geothermal, and gas, not renewables alone, and

  • facilitates rapid energy buildout by aggressive deregulation and National Environmental Policy Act (NEPA) exclusions.

• This causes a European dilemma: 

• • Europe’s climate-first energy strategy (Fit for 55, taxonomy regulations, coal phase-outs etc.) faces a cost-speed mismatch versus US energy abundance.

  • Inflation Reduction Act (IRA) and now AI Action Plan put Europe at a disadvantage in attracting energy-hungry AI investments.

  • Data centers and AI clusters may favor US or Middle East locations due to energy cost and regulatory flexibility.

What are the srategic opportunities & recommendations?

• Either increase AI-dedicated energy infrastructure, relax permitting for dispatchable power, or double down on efficiency and green compute.
• Invest in AI-dedicated energy infrastructure (e.g., modular nuclear, hydrogen, geothermal) to meet rising AI demand within Europe.
• Engage with EU and national governments to streamline permitting for AI-relevant infrastructure while aligning with climate goals.
• Form consortia with cloud providers, data center operators, and AI firms to co-develop competitive, sovereign European alternatives.
• Expand cybersecurity and AI-resilience services in anticipation of regulatory convergence around infrastructure risks.
• Stay close to evolving US export control frameworks while advocating for a coordinated EU tech protection regime.

Conclusion

America's AI Action Plan signals a paradigm shift in energy policy alignment with digital strategy. European energy sector must act swiftly to adapt, compete, and lead in a future where energy is the backbone of technological sovereignty. Cross-sector collaboration, regulatory agility, and bold infrastructure investment will be essential to maintain global relevance.

Will the winner take it all?