China Powers Data Centers With Clean Energy Strategy

China is rapidly expanding its data center capacity, driven by the growth of artificial intelligence, and is concurrently prioritizing the use of clean energy to power these facilities. This approach contrasts with trends in the U.S., where clean energy adoption for data centers is less centralized. For instance, a data center in Mongolia is supplied by 200 megawatts of wind power, 100 megawatts of solar power, and 45 megawatts of battery storage. In Qinghai, a pilot data center operates entirely on a solar microgrid, and another facility in northern China is connected to 500 megawatts of solar and 1.5 gigawatts of wind power.

These clean energy integrations are part of China's national strategy, particularly within eight large data center hubs established under its "East West Computing Strategy." This initiative mandates that all new data centers in these hubs source at least 80% of their electricity from clean sources. Further reinforcing this commitment, a government action plan released in May outlined 29 measures to increase the proportion of clean power used by data centers. China's latest five-year plan, set to be achieved by 2030, aims to build an extensive clean energy system across all sectors, not just data centers.

The push for clean energy is motivated by both energy security, a long-standing national focus, and concerns about climate change. Kyle Chan, a Brookings Institute fellow specializing in China's technology development and industrial policy, notes that Chinese policymakers appear to take climate change seriously. As the world's largest emitter of climate pollution, China's efforts to improve its environmental impact carry significant global weight. The country is targeting a 53% increase in renewable generation by 2030 and aims to peak coal and oil consumption by the same year. This strategic direction is occurring while the U.S. faces different challenges in expanding clean energy infrastructure.

Data centers are identified as a crucial component of China's broader energy transition plans. Projections suggest that China will more than double the electricity consumption of its data centers, making the integration of clean energy sources essential for meeting its environmental and energy objectives. This comprehensive strategy underscores China's commitment to balancing technological advancement with sustainable development.