(The Center Square) − The White House Council of Economic Advisers on Thursday released a report highlighting the Trump Administration’s energy strategy, projecting that policies aimed at “unleashing American energy” could raise U.S. GDP by as much as 1.9% by 2035 and support national security, energy affordability, and emerging technologies like artificial intelligence.
The report argues that revitalizing domestic oil, gas, coal, and nuclear production — combined with regulatory reform and infrastructure investment— can strengthen the U.S. economy while meeting the surging energy needs of AI-driven data centers and reshored manufacturing.
“The United States is blessed with a wealth of natural resources,” the report states. “Enacting policies that make the most of U.S. resource abundance and promote U.S. energy dominance can meaningfully contribute to economic growth and consumer welfare.”
The White House credited President Trump’s executive actions, including faster permitting, resumed federal leasing, support for advanced nuclear reactors, and grid modernization efforts, for laying the groundwork for increased production and investment.
According to the analysis, energy-focused policies could increase GDP by:
0.25% to 0.67% from deregulation alone.
0.03% to 0.13% from removing restrictions on offshore oil commingling.
0.025% to 0.11% annually from expanded production on federal lands.
At least 0.03% from increased liquefied natural gas exports.
The report also links energy policy directly to AI competitiveness, citing projections that U.S. data centers will consume more electricity by 2030 than all energy-intensive goods manufacturing combined.
“There is no AI without energy,” it warns, quoting the International Energy Agency.
The report notes that just one ChatGPT prompt can be ten times more energy-intensive than a Google search.
To meet this growing demand, the administration has proposed an “all-of-the-above” strategy, with special emphasis on expanding nuclear power. Four executive orders signed in May direct reforms at the Nuclear Regulatory Commission and aim to quadruple U.S. nuclear capacity by 2050.
“Rapid growth of low-cost domestic baseload generation is essential to compete for AI dominance,” the report states, noting that China is already building 150 new nuclear reactors and could become the world’s largest nuclear power producer by 2030.
The White House also used the report to tout the “One Big Beautiful Bill Act”, which ends tax credits for wind, solar, and electric vehicles while expanding credits for biofuels, hydrogen, hydropower, and carbon capture.
The bill also appropriates funds to rebuild the Strategic Petroleum Reserve and build out grid reliability.
In a warning about overreliance on renewables without adequate backup, the report cites a major blackout in parts of Europe earlier this year caused by a sudden drop in solar generation, calling it “a concerning example of some critical flaws of renewable energy.”
To stabilize prices and supply, the administration advocates for delaying the retirement of coal and nuclear plants and interconnecting U.S. regional power grids.
“Even during hours of normal operation,” the report notes, “arbitraging regional price differences could lead to cost savings.”
The report concludes that small modular reactors could play a vital role in meeting data center needs. Amazon, Google, and Microsoft are already exploring co-locating data centers with SMRs.
“SMRs may end up being less costly than their conventional counterparts,” the report claims.
“Affordable, reliable, and sustainable electricity supply will be a crucial determinant of AI development,” the report states. “Countries that can deliver the energy needed at speed and scale will be best placed to benefit.”
