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Down with American Data Centers! Up with Chinese AI!
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Fusion42 · 25 July 2026 · Fusion42 review
New York's one-year moratorium on hyperscaler data centres (50MW+) signals growing regulatory friction on US AI infrastructure buildout, whilst Chinese labs are rapidly closing the frontier AI capability gap and will distil and open-source American models within months.
This Wire brief sits within Fusion42's coverage of AI Infrastructure.
◆ ◆ The Wire takeaway
If you're building AI compute infrastructure in the US, regulatory delays are now your real constraint—China is closing the model gap fast, and every month you're stuck in permitting is a month your advantage shrinks. You need to either move your buildout to states without moratoria or start solving the power grid problem, because waiting for Congress to fix permitting won't work.
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1 source · 25 Jul 2026
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