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Former Google Chief Touts Canadian Hydropower as Key to US AI Ambitions Amid Trade Tensions

Wall Street Logic by Wall Street Logic
April 12, 2025
in AI
Reading Time: 4 mins read
Former Google Chief Touts Canadian Hydropower as Key to US AI Ambitions Amid Trade Tensions
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Former Google executive Eric Schmidt has identified Canada’s abundant hydroelectric resources as potentially the most viable solution to power the rapidly growing artificial intelligence industry in North America. However, he acknowledged that escalating trade tensions between the United States and Canada under President Donald Trump’s administration could complicate this critical energy partnership.

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Speaking at the TED conference in Vancouver on Friday, Schmidt highlighted the immense energy requirements that advanced AI systems will demand in the coming years. “There’s a real limit in energy,” Schmidt explained, referencing projections that indicate the US technology sector will require an additional 90 gigawatts of power capacity to meet the demands of expanding data centers.

This staggering energy requirement presents a significant infrastructure challenge, as Schmidt noted that a typical nuclear power plant generates approximately 1 gigawatt of electricity. The construction of 90 equivalent nuclear facilities in the United States within the necessary timeframe is simply not feasible, creating what Schmidt characterized as “a major major national issue.”

Canada’s Energy Advantage

Canada’s substantial hydroelectric capacity represents an appealing solution to this energy challenge. The country’s clean, renewable electricity resources could potentially power the intensive computational demands of artificial intelligence data centers without the associated carbon emissions of fossil fuel alternatives.

“My answer, by the way, is: Think Canada. Nice people, full of hydroelectric power,” Schmidt suggested. However, he immediately acknowledged the political complications that might hinder such cooperation, adding, “But that’s apparently not the political mood right now — sorry.” This comment referenced the recent trade tensions between the United States and Canada, particularly President Trump’s implementation of tariffs and his controversial claim that Canada has “nothing” the United States needs.

Political Awareness in Canada

Schmidt’s assessment of Canada’s potential role in powering the AI revolution appears to align with perspectives from within Canadian political circles. Conservative leader Pierre Poilievre highlighted Canada’s existing data center infrastructure and energy advantages in a January interview.

“We have about 250 data centers in Canada — we could do a hell of a lot more, and our secret sauce is our energy, our incredible supply of energy of all kinds: hydro, nuclear, natural gas, you name it,” Poilievre stated. He advocated for policies to “unleash the production of these resources and bring all that money home,” suggesting that Canadian political leaders recognize the economic opportunity presented by the growing global demand for data center capacity.

AI Dominance and Security Concerns

Beyond the energy requirements for artificial intelligence, Schmidt also addressed more troubling dimensions of the global race for AI supremacy. He expressed concern about how competition for AI dominance between global powers could potentially lead to conflict or preemptive actions against rivals’ technological infrastructure.

Schmidt referenced a paper he co-authored that was published last month, which introduced the concept of “Mutual Assured AI Malfunction.” This framework describes a scenario in which “any state’s aggressive bid for unilateral AI dominance is met with preventive sabotage by rivals.” During his TED appearance, Schmidt elaborated on this concept, suggesting that one potential manifestation of such sabotage could involve attacking an opponent’s data centers.

“Do you think I’m insane? These conversations are occurring around nuclear opponents today in our world,” Schmidt stated, emphasizing the seriousness with which some global actors are approaching technological competition. “You can imagine a series of steps along the lines of what I’m talking about that could lead us to a horrific global outcome — that’s why we have to be paying attention.”

Schmidt also mentioned “track 2” or non-state diplomatic dialogues on artificial intelligence with China that had been arranged by the late diplomat Henry Kissinger, who was one of his co-authors on recent work regarding AI security concerns.

The Energy-AI Nexus

The connection Schmidt draws between energy resources and artificial intelligence development highlights a critical but often overlooked aspect of the technological race between nations. While discussions about AI advancement frequently focus on algorithmic innovations, talent acquisition, and computational hardware, the underlying energy infrastructure necessary to power these systems represents a fundamental constraint that could determine which countries successfully develop and deploy advanced AI capabilities.

Canada’s hydroelectric resources provide a renewable, stable energy source that could power energy-intensive AI operations without contributing significantly to carbon emissions. This stands in contrast to data centers powered by fossil fuels, which not only have environmental implications but may also face increasing regulatory constraints and carbon pricing that could impact their economic viability.

Geopolitical Implications

The identification of Canadian energy resources as potentially crucial to American technological advancement comes at a particularly complex moment in the relationship between the two countries. President Trump’s administration has implemented tariffs affecting Canadian goods and has made statements questioning the value of trade between the nations, creating an uncertain environment for cross-border energy and technology cooperation.

This tension illustrates how technological development, particularly in strategic fields like artificial intelligence, is increasingly intertwined with broader geopolitical considerations. Energy resources, technological infrastructure, national security, and international trade policies have become interconnected factors in the global competition for leadership in transformative technologies like AI.

Future Outlook

As the energy demands of artificial intelligence continue to grow, policymakers and industry leaders in both the United States and Canada may need to find ways to navigate trade tensions to address the infrastructure challenges Schmidt highlighted. The economic opportunities associated with hosting data centers and providing energy for AI operations could potentially create incentives for cooperation despite broader political disagreements.

Schmidt’s comments at the TED conference underscore both the opportunities and challenges that lie ahead as North America seeks to maintain competitiveness in artificial intelligence development. While technical innovation remains vital, securing the necessary energy infrastructure to power these systems may ultimately prove equally important in determining which nations lead the next phase of technological advancement.

The former Google executive’s observations suggest that resolving trade tensions between the United States and Canada could have implications well beyond traditional economic sectors, potentially influencing the future trajectory of artificial intelligence development across North America.

 

 

Acknowledgment: This article was written with the help of AI, which also assisted in research, drafting, editing, and formatting this current version.
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