Physix FrontierPhysix Frontier · News Briefing Card (enbrief · Sep 24, 2026)
US AI Power Cost Disadvantage May Trigger Valuation Risk
KEY FACTS
- Analysts point out that Chinese AI companies achieve about 90% of the performance of their US rivals at roughly 10% of the cost.
- Up to half of US AI companies' costs come from data center electricity, and that share is expected to keep rising.
- China's power grid uses 800 to 1,100 kV ultra-high-voltage direct current lines, with a single corridor able to transmit 12 gigawatts of power.
- The US grid is split into three independent interconnections—Eastern, Western, and Texas—making cross-regional power dispatch difficult.
- US gas turbine order backlogs stretch to seven years, and prices are expected to rise to three times their previous level.
KEY DATA
about 90%China AI performance as share of US
about 10%China AI cost as share of US
up to 50%Electricity share of US AI costs
800-1100kVChina UHV line voltage
PHYSIX OBSERVATION
Electricity is turning from a back-office cost into the deciding factor in the AI race. China uses ultra-high-voltage nationwide dispatch to drive down computing power electricity prices, while the US is constrained by a fragmented grid and gas turbine production bottlenecks. If the cost gap persists, high US AI valuations will face repricing pressure, and investors need to re-examine the energy ceiling on computing power expansion.
Source: enbrief original report ↗