Nvidia plans $2 billion Texas AI manufacturing expansion with Coherent

  • Jensen Huang defended U.S. AI data-center expansion amid growing community and grid concerns.
  • AI startups received $400 billion in investment during the past six months.
  • New York paused qualifying hyperscale data-center projects for up to one year.

Nvidia CEO Jensen Huang is defending the U.S. AI data-center buildout as a potential engine for domestic manufacturing, job creation and investment in the power grid, while acknowledging that developers must address community concerns. Huang endorsed investor Gavin Baker's view that modern data centers increasingly use closed-loop or recycled water systems, generate tax revenue and create demand for skilled workers such as electricians, plumbers and technicians. Huang said AI is helping return manufacturing to the United States after decades of offshoring and is driving investment in aging power grids and sustainable energy through market forces rather than subsidies. He also said AI startups received $400 billion during the past six months. The debate comes as a July Georgia Tech study found that data-center benefits are unevenly distributed. Michigan, Texas and New York have taken steps to scrutinize or restrict projects, including a pause of up to one year in New York for hyperscale facilities requiring at least 50 megawatts. Nvidia shares closed at $217.55, down 4.57%, before trading at $218.75 in Monday premarket action.

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