China hopes to power AI boom with green energy in new data centre strategy
To fuel its growing AI sector and computing prowess, China is integrating the development of power-hungry data centres into its national energy strategy.
Under a new action plan released on Wednesday, Beijing would coordinate data centre planning with energy infrastructure in areas and regions rich in new energy resources, to meet the surging electricity demands of high-performance computing facilities.
'We will focus on national hub nodes and resource-abundant non-hub regions such as Qinghai, Xinjiang and Heilongjiang, coordinating existing and new data centre demand for green electricity with local renewable energy capacity,' China's National Energy Administration said.
To ease pressure on electricity grids during peak hours, innovative technologies would be used to forecast consumption and renewable generation in real time, enabling data centres to use energy more flexibly, according to the plan.
On the same day, the Ministry of Industry and Information Technology held a meeting to discuss efforts to advance artificial intelligence and hi-tech manufacturing. 'While nurturing major AI firms, we also need to support smaller, specialised companies,' the ministry said.
The move underscores China's
ambitions to dominate AI , a sector that is rapidly becoming a significant driver of economic growth but could pile pressure on electricity supplies. Power consumption from data centres was expected to rise sharply as more applications and users emerge, especially following the launch of China's home-grown AI model, DeepSeek.
Power demand for AI computing could grow 43 per cent in 2025 compared to the previous year, according to a February report from the International Data Corporation (IDC) and Inspur Information.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South China Morning Post
an hour ago
- South China Morning Post
China signals readiness on rare earth talks, approves more exports
China has approved some qualified rare earth export applications and is ready to deepen dialogue with nations over export controls, the Ministry of Commerce said as the strategic resource continued to take centre stage in Beijing's trade negotiations with the United States. 'We've observed growing global demand for medium and heavy rare earths in civilian sectors such as robotics and new energy vehicles, as these industries continue to expand,' the ministry said in a statement posted on its official website on Saturday. It added that, as 'a responsible major power', China had taken the legitimate civilian needs of other countries into account, approved qualified export applications in line with the law, and would continue strengthening its compliance review process. 'China is willing to enhance communication and dialogue with relevant countries on export controls in order to facilitate compliant trade,' the ministry said. Rare earths – a long-held ace for Beijing in its dealings with Washington – are at the heart of the China-US trade tug of war. Vice-Premier He Lifeng is expected to attend the first meeting of the US-China bilateral economic and trade consultation mechanism during his trip to London from Sunday to Friday. China, the world's largest producer of rare earths , accounts for around 70 per cent of global rare earth mining and around 90 per cent of the refining of the minerals. The minerals are essential for making consumer electronics, electric vehicles and hi-tech defence systems.
South China Morning Post
3 hours ago
- South China Morning Post
Go for a second term? ‘I'm focused on the now': Hong Kong's John Lee
Chief Executive John Lee Ka-chiu has said he will focus on the now and 'grasp the moment' in preparing Hong Kong for an unpredictable world as he addressed speculation on whether he will be seeking a second term as the city's leader. 'I think for anybody in the government, focus on what you're doing now, as the world can be very unpredictable. Nobody predicted, when I was in my first year, that I would have this tariff war that affects everybody in this world,' Lee said in an interview with the Post to review the past three years of his five-year term as Hong Kong's leader. 'Grasp the moment. Do your best; maximise the value, I think, the chief executive has been creating for society. That is my mission. That is always my goal,' he said, declining to say if he was considering another five-year term. Lee, a career police officer and security official, rose to Hong Kong's top post in July 2022, two years after Beijing imposed the national security law in the city following the months-long anti-government protests in 2019. The next chief executive election is expected to take place in 2027. 22:27 Why Hong Kong will remain a free port regardless of Donald Trump's tariffs Why Hong Kong will remain a free port regardless of Donald Trump's tariffs During the interview with the Post, he highlighted his administration's achievements in restoring stability and security, particularly through the enactment of a domestic national security law, a constitutional requirement enshrined in Article 23 of the Basic Law, the city's mini-constitution.
South China Morning Post
4 hours ago
- South China Morning Post
EU biodiesel tariffs offer Hong Kong a chance to boost adoption of green fuel
The European Union's (EU) tariffs on biodiesel and renewable diesel from China present Hong Kong with an opportunity to promote the use of low-carbon fuels, according to a business group, which called for more measures to support its adoption. Advertisement A dearth of financial incentives and infrastructure has also resulted in limited use by the public and private sector to meet climate goals, according to the Business Environment Council (BEC). 'The EU's anti-dumping tariffs have forced Chinese producers to adapt their business models, including exporting to nearby regions,' the BEC said in a May 29 report. 'Strategic collaborations could support Hong Kong to [adopt] biofuels.' Hong Kong's biodiesel consumption amounted to 7.5 per cent of the city's annual production of 100,000 tonnes, with the rest exported, according to the BEC. Backed by more than 320 companies, the council provides advisory, research and training on environmental protection and climate mitigation. 01:42 Japanese train runs on ramen oil Japanese train runs on ramen oil The EU last August imposed anti-dumping duties on Chinese biofuel, citing the need to protect almost 6,000 jobs in 19 member states from 'unfair competition'. The final levies in February ranged from 10 to 35.6 per cent.
