New research from the Institute for American Manufacturing & Technology warns that the United States lacks the energy infrastructure to simultaneously support the expansion of AI data centers, reshored manufacturing, and increased defense production — three pillars of current industrial policy.
Patrick J. Wolf, PhD, Executive Director of IAMT, has published a pair of research papers through the organization’s Atlas Institute examining energy vulnerability and the projected power demands of America’s industrial ambitions.
The first paper, “Oil: The Price of Disruption,” analyzes historical patterns of energy price shocks and their cascading effects across transportation, agriculture, manufacturing, and defense readiness. Wolf argues that despite increased domestic oil production, the American economy remains structurally exposed to global supply disruptions.
The companion paper, “Powering the Buildout,” projects the energy requirements of current policy commitments. The research finds that the combined power demands of new AI data centers, returning manufacturing operations, and expanded defense production will far exceed available grid capacity unless significant new generation and transmission infrastructure is built.
“The policy conversation around reshoring and AI treats energy as a background assumption,” Wolf writes. “It isn’t. Energy is the binding constraint on every industrial ambition this country has right now.”
IAMT operates through three research divisions: the Aegis Institute for AI and compute infrastructure, the Atlas Institute for energy and power systems, and the Forge Policy Institute for manufacturing and supply chains. The organization is based in Idaho.
About the author:
Patrick J. Wolf, PhD, is an American strategist, policy researcher, and founder based in Post Falls, Idaho. He is the Executive Director of the Institute for American Manufacturing & Technology (IAMT), the publisher of American Star News, and the founder of Idaho Leaders and the American Founders Institute. Wolf holds a PhD in Strategic Media and Communications, an MBA, and a BS in Industrial Engineering. He is also a Lean Six Sigma Black Belt. His full profile and published work are available at patrickjwolf.com.
All research is available at iamtpolicy.org.