China’s state planner has called for increased investment in upgrading energy infrastructure to support the country’s transition to cleaner energy. The new plan emphasizes the need for investments in renewable energy technologies, power grid improvements, energy conservation, and enhanced flexibility for coal power plants. Beijing has indicated that these areas are crucial for moving away from coal and adopting lower-carbon power sources. The plan also reinforces existing regulations requiring upgrades for older wind farms—those over 15 years old or with a capacity below 1.5 megawatts (MW).
Globally, major economies are facing unprecedented growth in electricity demand, driven by advancements in technologies like Artificial Intelligence (AI), cryptocurrencies, and clean energy manufacturing. The surge in AI, in particular, has significantly increased power consumption. The Electric Power Research Institute (EPRI) forecasts that data centers could consume up to 9% of total electricity generated in the United States by the end of the decade, up from about 1.5% currently, according to Scientific American. This represents a projected 15% increase in electricity demand in the U.S. over the next decade, a trend that could challenge President Biden’s goal of decarbonizing the power sector by 2035.
In response, U.S. Energy Secretary Jennifer Granholm revealed in June that President Biden’s administration is engaging with major technology companies to invest in climate-friendly electricity generation to meet this rising demand.
Granholm stated, “We’ve been talking with data companies. The large ones have commitments to net-zero and would like to see clean baseload power. If tech companies are going to pull clean power from the grid, they should contribute to it. So, a lot of discussions are happening now between tech companies and utilities, as well as tech companies and nuclear energy providers,” she told Reuters in an interview.