Trump’s Grid Security Order Could Backfire on America’s AI Boom

President Donald Trump’s August 26, 2026, Executive Order 14421, “Declaring a National Emergency to Secure the United States Bulk-Power System,” aims to protect the U.S. electric grid from foreign supply-chain and cybersecurity risks. The order cites digital backdoors, malicious remote access, and supply disruptions as threats magnified by the rapid growth of artificial intelligence data centers, advanced manufacturing, and defense production. It authorizes the Secretary of Energy to prohibit or condition acquisitions, imports, transfers, or installations of foreign-produced bulk-power system electric equipment linked to a “Covered Foreign Entity” when the Secretary finds undue or unacceptable national-security risks. Rules are due by December 24, 2026 (120 days), with recommendations for Federal Acquisition Regulation changes due in 180 days. Souce ⁠White House

Rystad Energy’s analysis, published via OilPrice.com and its own channels on or around October 12, 2026, argues the order is more likely to disrupt battery storage supply chains critical to AI and data center resilience than the transformers and switchgear that have already largely shifted away from Chinese sources. This assessment aligns with the order’s explicit coverage of battery energy storage systems (BESS) and uninterruptible power supply (UPS) systems supporting critical infrastructure, which extends to behind-the-meter systems used by data centers.⁠Source Oilprice