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Power hardware shortages are delaying AI data centre expansion, despite record investment

US AI data-centre expansion is increasingly being constrained not by chips, servers or funding, but by the electrical hardware needed to connect new facilities to reliable power, Bloomberg reports. While the US–China trade war has pushed many server makers to move production out of China, the deeper dependency remains in power-delivery equipment.

China is still the world’s largest producer of electrical gear used to build and upgrade power infrastructure, both inside data centres and across the wider grid. Shortages of key components, especially transformers, switchgear and batteries, sourced from China and elsewhere, are now slowing project timelines.

The scale of planned build-outs is colliding with these supply limits. Bloomberg cites forecasts that Alphabet, Amazon, Meta and Microsoft will spend more than $650bn in 2026 to expand AI capacity, yet close to half of the planned US data-centre builds this year are expected to be delayed or cancelled.

The problem extends beyond the data-centre fence line. Companies must also fund and coordinate grid upgrades to supply enough electricity, competing for the same scarce equipment as utilities coping with rising demand from electric vehicles and electrified heating.

Sightline Climate data cited by Bloomberg suggests about 12GW of US data-centre capacity is expected to come online in 2026, but only around a third of that capacity is currently under active construction due to multiple constraints. Electrical infrastructure may represent less than 10% of total data-centre cost, but it is schedule-critical, because delays in any link of the power chain can halt an entire project.

Lead times for high-power transformers, in particular, have deteriorated sharply, typically 24 to 30 months before 2020, but now stretching to as long as five years, clashing with AI deployment cycles that can be under 18 months.

To cope, developers are turning to global suppliers, with Canada, Mexico and South Korea becoming major sources of high-power transformers. Even so, US imports of Chinese high-power transformers have surged from fewer than 1,500 units in 2022 to more than 8,000 units through October 2025, according to Wood Mackenzie data cited by Bloomberg. China also supplies over 40% of US battery imports and remains near 30% in some transformer and switchgear categories, underscoring continued reliance despite tariffs and security concerns.

Why does it matter?

Bloomberg’s central warning is that without easing bottlenecks in transformers, switchgear and batteries, and expanding US manufacturing capacity, trillions of dollars of AI investment may not translate into delivered AI capacity, because power infrastructure, not compute, is becoming the limiting factor.

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US Supreme Court narrows ISP copyright liability, sharpening focus on intent with potential implications for generative AI

A unanimous 9–0 US Supreme Court ruling this week has narrowed the circumstances under which an internet service provider (ISP) can be held liable for users’ copyright infringement by focusing on a deceptively simple question: intent. Writing for the Court, Justice Clarence Thomas said an ISP is liable only if its service was designed for unlawful activity or if it actively induced infringement; merely providing a service to the public while knowing some users will infringe is not enough.

Applying that standard, the Court found Cox Communications did neither, shielding it from a potential $1bn exposure following a long-running dispute that included a jury verdict later vacated.

The decision is now being read for its possible implications beyond ISPs, particularly in the escalating copyright battle between publishers/authors and generative AI firms. The key distinction raised is that broadband networks function as neutral conduits, whereas large language models are built specifically to produce fluent, human-like writing, including prose, poetry and dialogue, that can resemble the work of human authors.

In the article’s framing, that resemblance is not incidental but central to the product’s purpose: if a subscriber uses broadband to pirate a novel, the ISP did not build its network to enable that outcome, but an AI model prompted to write in a specific author’s style is designed to fulfil that request.

That contrast could open a new line of argument in AI litigation. While major US cases, such as suits brought by the Authors Guild and individual authors against OpenAI, Meta and others, have largely centred on whether training on copyrighted books is itself infringing, the Cox ruling highlights a second front: whether the systems’ purpose and optimisation for author-like output could be characterised as being ‘tailored for’ infringement or as purposeful inducement under an intent-based standard.

Publishers, who are simultaneously watching the lawsuits and negotiating licensing deals with AI companies, have so far been more cautious than the music industry was in its costly fight against Cox, an effort that ultimately produced a Supreme Court ruling that narrowed, rather than expanded, leverage.

Why does it matter?

The broader takeaway is that copyright enforcement may increasingly turn not only on what was copied, but what the copying was for, an approach that could prove consequential for AI companies whose commercial proposition is generating human-quality creative work.

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Oracle expands AI options for US government agencies

The US government is set to gain expanded AI capabilities through new infrastructure and model deployment options in Oracle Cloud.

These developments aim to improve agencies’ ability to manage critical tasks, from situational awareness to cybersecurity, while maintaining strict security and compliance standards.

High-performance GPUs and AI models will support faster, more reliable inference and training, helping agencies respond more effectively to public needs.

The focus is on enabling secure deployment in environments with sensitive data and complex regulatory requirements, ensuring AI use aligns with public interest and safety.

Such an expansion builds on existing government AI frameworks, offering capabilities for retrieval-augmented generation, secure inference, and operational analytics.

By integrating AI in a controlled, compliant environment, US agencies can improve efficiency, decision-making, and public service delivery without compromising security.

Ultimately, these advancements by Oracle aim to ensure that government AI adoption benefits citizens directly, supporting transparency, accountability, and effective public administration in high-stakes contexts.

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New Mexico wins major case against Meta

A jury has found Meta Platforms liable for misleading consumers and endangering children in a landmark case brought by the New Mexico Department of Justice. The verdict marks the first successful trial by a US state against a major tech firm over child safety concerns.

Jurors awarded civil penalties totalling 375 million dollars after finding violations of consumer protection law. The case focused on claims that platform design choices exposed young users to harmful and exploitative content.

Evidence presented in court included internal company documents and testimony suggesting awareness of risks to children. Allegations centred on failures to prevent exploitation, as well as features linked to addictive behaviour and exposure to harmful material.

Further proceedings in the US are scheduled, with authorities seeking additional penalties and mandated changes to platform safety measures. Proposed actions include stronger age verification and improved protections for minors online.

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CFTC launches AI and crypto innovation task force

The Commodity Futures Trading Commission (CFTC), an independent agency of the United States federal government, announced the creation of an Innovation Task Force to support the development of new technologies in US derivatives markets. Chairman Michael S. Selig leads the initiative and focuses on establishing clear regulatory approaches.

The task force will work with the Innovation Advisory Committee to develop frameworks covering crypto assets, blockchain technologies, AI and autonomous systems, and prediction markets. Authorities said the aim is to provide clarity for innovators building new financial products.

According to Selig, clearer rules are intended to support responsible innovation and ensure market participants remain competitive. The task force is also expected to help implement the Commission’s broader innovation agenda.

Coordination with other federal bodies is planned, including collaboration with the US Securities and Exchange Commission and its Crypto Task Force. Michael J. Passalacqua, senior advisor to the Chairman, has been appointed to lead the initiative.

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Europe boosts AI, talent and investment to compete with US and China

Efforts to strengthen technological competitiveness in Europe focus on advancing AI capabilities, developing new forms of talent and improving access to investment.

Discussions at the CTx Tech Experience in Seville highlighted a growing consensus that innovation must scale more effectively if the region is to compete globally.

Participants emphasised that Europe continues to face structural challenges, including fragmented markets, regulatory complexity and limited capital for high-growth companies.

These constraints have made it more difficult for startups to expand, prompting calls for stronger coordination between public institutions and private investors.

AI is increasingly viewed as the foundation of the transformation. Industry leaders pointed to the emergence of new business opportunities driven by AI, alongside the need to translate innovation into scalable commercial outcomes.

At the same time, labour market dynamics are shifting towards hybrid skillsets that combine technical expertise with business understanding and critical thinking.

In such a context, strengthening Europe’s innovation capacity is seen as essential to competing with global powers such as the US and China.

As technological competition intensifies, the ability to align talent, capital and policy frameworks will play a decisive role in shaping the region’s position within the global digital economy.

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US senator proposes AI rules for children

A US senator has introduced a draft framework to establish nationwide AI rules, with a focus on child safety and copyright protection. The proposal seeks to create a unified federal approach to replace state laws that differ.

The plan would require developers to implement safeguards for minors, including age verification, data protection and mechanisms to report harm. Companies could also face legal action over failures linked to AI system design.

Copyright measures include new standards for identifying AI-generated content and preventing tampering. Authorities would also develop cybersecurity guidelines to support the transparency and authenticity of content.

Debate over this in the US continues over the balance between regulation and innovation, with some stakeholders warning of legal and economic risks. Discussions between lawmakers and the administration are expected to shape a final framework.

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EU calls on US tech firms to respect rules on handling staff data

Concerns over data protection have intensified as the European Commission calls on major technology companies to apply the EU standards when handling sensitive staff information linked to digital regulation.

Pressure follows requests from the US House Judiciary Committee seeking access to communications between US firms and the EU officials involved in enforcing laws such as the Digital Services Act and Digital Markets Act.

The EU officials emphasise that formal exchanges with companies take place through official channels, including documented correspondence, rather than informal messaging platforms. Internal communication practices may involve encrypted tools, reflecting growing concerns about data security and external scrutiny.

Debate surrounding the issue reflects wider tensions between the EU and the US over digital governance, privacy protections and regulatory authority. Questions over jurisdiction and access to sensitive communications are likely to remain central as transatlantic tech policy evolves.

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EU urged to push digital tax despite US opposition

Calls for an EU-wide digital services tax are growing, as Pasquale Tridico, chair of the European Parliament’s subcommittee on tax matters, urged Brussels to act despite strong opposition from the US. He argued that such a measure would make Europe’s tax system fairer in a market dominated by foreign tech firms.

Tensions have increased as Washington threatens tariffs on countries introducing digital taxes targeting major platforms. Existing national levies in countries like France contrast with the absence of a unified EU approach due to member state control over taxation.

The proposal comes amid wider strain in transatlantic relations, with disputes over trade, regulation and influence on EU policymaking. US criticism has also focused on European rules such as the Digital Services Act and the Digital Markets Act.

Supporters argue that a digital tax would apply equally to global companies, not only US firms, while addressing imbalances between sectors. Digital businesses can generate large profits without the same physical costs faced by traditional industries.

Further proposals include new approaches to taxing wealth, reflecting how digitalisation blurs the line between income and capital. Advocates say such reforms are needed to adapt taxation to the modern economy.

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OpenAI says ChatGPT advertisements remain limited to the US

Despite speculation that the feature was expanding internationally, OpenAI has clarified that advertisements in ChatGPT are currently available only to users in the US.

Questions about a broader rollout emerged after references to advertisements appeared in the platform’s updated privacy policy. Some users interpreted the language as evidence that advertising would soon be introduced globally.

OpenAI said the policy update does not signal an immediate expansion. According to the company, advertising features are still being tested within the US as part of a gradual deployment strategy.

ChatGPT advertisements were introduced in February 2026 and appear below responses generated by the chatbot. The ads are shown only to logged-in users on free subscription tiers and are not displayed to users under eighteen.

Company representatives stated that advertising systems operate independently from the AI model that generates responses. According to OpenAI, advertisers cannot influence or modify the content produced by ChatGPT.

The company also said it does not share user conversations or personal chat histories with advertisers. However, advertisements may still be personalised based on user queries, which has prompted discussions about how conversational interfaces could shape consumer decisions.

OpenAI indicated that it is adopting a cautious, phased approach before considering any wider rollout of ChatGPT advertising features in other markets.

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