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The Trump administration has cancelled a $4.9 billion loan guarantee for a major power line project, raising serious questions about how the U.S. plans to support the fast-growing demand for electricity driven by artificial intelligence. The decision affects the Grain Belt Express, an 800-mile transmission line that would have delivered wind-powered electricity across four states.
The announcement came on the same day the White House shared its plans to lead in the global AI race, which includes expanding the power grid to support new data centres. The timing of the cancellation has puzzled lawmakers and energy experts alike.
Senator Thom Tillis, a Republican from North Carolina, didn’t hold back. He said, “You can’t have it both ways,” pointing out that AI-related industries need reliable, high-capacity power to function. Without a strong grid, efforts to grow the tech sector will fall short.
The Grain Belt Express was designed to carry clean energy from Kansas to Missouri, Illinois, and Indiana, areas where demand is rising fast. The project had all state permits in place and was ready to begin construction next year. Developer Invenergy said the power line could have supported up to 50 new data centres, helping to ease energy shortages and reduce costs for consumers in nearly 30 states.
Business groups are concerned. Ray McCarty, head of Associated Industries of Missouri, said companies are already losing data centre projects because they can’t provide enough electricity. The Grain Belt Express, he said, could have solved that.
Even some Republicans who usually support Trump were frustrated. Representative Erin Houchin from Indiana supported the project and said it was vital for staying ahead of China in the AI and tech race. “They’re building power infrastructure fast. We need to do the same,” she warned.
The Energy Department explained that the project no longer needed federal help, suggesting it could move forward on its own. But many see this as part of a broader pattern of mixed signals from the Trump administration, promoting AI on one hand while pulling back support on key infrastructure on the other.
Senator Josh Hawley of Missouri disagreed with the project from the start. He said it offered little benefit to his state, and he isn’t concerned about the effect on national AI goals.
Still, energy experts say the country needs thousands of miles of new power lines to meet future demand. Last year, the U.S. only built 322 miles of high-voltage lines, nowhere near enough to keep up with the needs of AI, electric vehicles, and modern industry.
The decision also appears to go against the White House’s new AI Action Plan, which promises faster permits and more federal land for power and data centre projects. Now, with this key project cancelled, many are asking if the administration can realistically achieve its AI ambitions without the energy infrastructure to back it up.