The AI economy is booming in the United States, with the country investing heavily in data centers and AI-related infrastructure. In contrast, Canada is lagging behind, with a slower adoption of AI and less investment in computing technology. This disparity is evident in the trade front, with Canada largely sitting out the rush to secure AI-related equipment from overseas. The U.S. is on track to double its imports of processors and servers from Mexico this year, while Canada's investment in data center construction is mixed in with all spending on transportation and utilities, resulting in a 52% decrease in permits over the last 12 months. The U.S. is also witnessing a surge in data center construction, with companies spending over $50 billion on an annualized basis, while Canada's smaller size and difficulty in securing semiconductors are partly to blame for its slower pace. Alberta, the only fully deregulated power market in Canada, is making strides in attracting data center investment, but developers still face opposition. Canada needs to be realistic about its data center goals and address the growing antipathy toward AI, which is significantly below the global average. The widening gap in business investment between the two countries is concerning, and Canada's poor track record doesn't bode well for its future. The AI boom is creating trade distortions in the U.S., and Canada's lack of investment in AI systems is a longstanding issue. The country needs to embrace AI and tackle the fear surrounding it to close the gap with the U.S.
