Renowned American investor Michael Burry, famous for predicting the 2008 financial crisis, has issued a stark call to US political leaders. He is urging them to launch an unprecedented $1 trillion national project to rapidly expand nuclear power and modernise the electricity grid. This, he argues, is the only way for the United States to meet the soaring energy demands of artificial intelligence and keep pace with China.
The $1 Trillion Proposal: Small Reactors and a Hardened Grid
In a detailed post on the social media platform X, Burry laid out his urgent plan. He directed his message to figures like former President Donald Trump, Vice President JD Vance, and other key leaders. His proposal is bold: bypass lengthy protests and regulations to dot the entire country with small nuclear reactors.
Simultaneously, he advocates for building a brand-new, state-of-the-art national grid. Burry emphasises that this infrastructure must be secured from both physical and cyber attacks, even suggesting the creation of a special Nuclear Defense Force. He frames this massive investment as a critical step for long-term national security and economic growth, stating it is the only hope to grow enough to ultimately manage the US national debt.
AI Boom Fuels Unprecedented Power Crisis
Burry's comments come at a time of growing alarm within the tech and energy sectors. The explosive growth of AI data centers and advanced manufacturing is driving electricity demand to record levels. US power consumption is projected to grow by 2.6% annually until 2030, a rate that existing infrastructure may struggle to support.
Analysts warn that power shortages could severely constrain innovation and economic growth. Daniel Newman, CEO of the Futurum Group, strongly echoed Burry's concerns. He called regulatory hurdles the single biggest bottleneck to sustaining the AI revolution. Newman dismissed fears of an AI bubble, arguing the demand is real, but progress is threatened by the inability to power the necessary data centers.
Industry Leaders Echo the Warning
The concern over energy as a limiting factor is widespread among tech visionaries. Nvidia CEO Jensen Huang has previously cautioned that AI's long-term trajectory will be limited not by chip availability, but by access to electricity. Meanwhile, venture capitalist Chamath Palihapitiya warned that strain on the grid could cause electricity prices to double within five years.
This debate also touches on the future energy mix. While Burry pushes for nuclear, Tesla CEO Elon Musk has predicted that solar power will become civilization's dominant energy source. Despite differing solutions, the consensus is clear: the United States faces a looming power crisis that must be addressed with speed and scale to maintain its technological edge and economic security against global competitors like China.
