Clean energy build-out, storage, critical minerals and industrial power demand

As AI and electrification accelerate across industries, the demand for clean energy, energy storage solutions, and access to critical minerals has become more urgent than ever. The push for sustainable, resilient energy infrastructure is reshaping the global landscape, driven by substantial investments, technological innovation, and geopolitical shifts.

Solar, Storage, and Electricity Demand Trends in the Age of AI

The surge in AI deployment and the electrification of transportation and industry are fueling unprecedented growth in electricity consumption. According to recent data, AI-related infrastructure alone accounted for an estimated 35%–45% of U.S. GDP growth from late 2024 to mid-2025, highlighting its role as a key driver of energy demand. To meet this rising need, significant advancements in solar and storage technologies are underway.

Renewable energy sources, particularly solar, are expanding rapidly. The Solar Energy Industries Association (SEIA) reports that the solar and storage industry is experiencing robust growth, supported by policy and market momentum. Energy storage systems are crucial for balancing intermittent renewable generation and ensuring grid stability as demand surges.

Innovations in clean energy technologies are also emerging, such as fusion startups like Inertia Enterprises, which have secured $450 million to develop laser fusion reactors. These reactors promise virtually limitless, clean energy capable of powering large data centers and orbiting AI platforms, reducing reliance on fossil fuels and enhancing energy resilience.

Furthermore, next-generation nuclear reactors, including small modular reactors (SMRs) and fast reactors, are gaining traction as reliable, low-carbon baseload power sources vital for supporting AI infrastructure's continuous operation. The integration of renewables with grid-scale storage, supported by policies from organizations like SEIA and regulatory frameworks such as California’s CARB rules, aims to reduce costs and improve environmental compliance for data center growth.

Critical Minerals Strategy, Trade, and Regulatory Shifts

The expansion of clean energy and AI hardware heavily depends on securing critical minerals like lithium, cobalt, and rare earth elements. Supply chain resilience has become a central focus, with initiatives such as "Batteries and Borders" emphasizing diversification of mineral sources to reduce dependence on China—a dominant supplier.

The geopolitical landscape further complicates this dependency. US-China export restrictions continue to impact semiconductor innovation and supply chains, prompting the U.S. and allied nations to accelerate domestic critical mineral processing and mineral resource development. Transatlantic collaborations are increasingly vital, aiming to establish resilient supply chains that can withstand geopolitical tensions.

In addition, the U.S. government is actively engaging in policy shifts and trade negotiations. For instance, the USTR is seeking input on plurilateral critical minerals agreements to foster international cooperation, while efforts are underway to develop comprehensive strategies for critical mineral security that support both energy and manufacturing sectors.

Geopolitical and Regulatory Dynamics

Tensions between governments and private sector players are shaping the development of AI infrastructure and clean energy. Notably, geopolitical conflicts such as the Anthropic–Pentagon stand-off highlight concerns over sovereignty and control of AI technology. Anthropic’s rejection of Pentagon offers illustrates the desire for independent AI innovation amid security concerns.

Meanwhile, legal and policy environments are evolving rapidly. The U.S. Supreme Court’s decision to strike down tariffs on Chinese imports has introduced market uncertainty but also opened avenues for increased e-commerce and supply chain flexibility, impacting the energy and manufacturing sectors.

Climate regulations are also influencing infrastructure development. California’s climate transparency regulations require entities to disclose carbon footprints, incentivizing investments in sustainable cooling, energy efficiency, and decarbonization of data centers.

The Path Forward

The convergence of massive capital investments, technological breakthroughs, and geopolitical shifts underscores the importance of secure, sustainable energy and critical mineral supply chains in supporting AI and industrial growth. Space-based data centers and orbiting AI platforms are emerging as resilient alternatives to traditional onshore infrastructure, offering low-latency, global coverage while mitigating risks from natural disasters or conflicts.

To maintain leadership, nations must continue coordinated policies, robust investments, and diplomatic efforts to navigate a complex landscape where technology, geopolitics, and sustainability are deeply intertwined. Ensuring access to critical minerals, advancing clean energy solutions, and fostering international cooperation will be essential in shaping a resilient and sustainable energy future beyond 2026.