China Issues Plan to Integrate AI and Energy

Chinese regulators issued a national action plan that ties the expansion of AI computing to green energy deployment, the South China Morning Post reports. According to SCMP, the document was jointly released by the National Energy Administration, the National Development and Reform Commission, the Ministry of Industry and Information Technology and the National Data Administration and contains 29 measures aimed at improving integration between green power and AI data centres. The plan encourages operators to increase the share of green electricity in computing facilities using "green certificates" and "green power trading markets" and promotes cleaner backup power systems to replace diesel generators, SCMP reports. The regulators said the goal is to "build a new development pattern of mutual empowerment and deep integration between AI and energy" by 2030. The official notice on english.www.gov.cn similarly states the plan envisions a significant increase in clean energy supply capacity for AI computing infrastructure by 2030. SCMP cites the China Electricity Council reporting that electricity consumption in the internet and computing sector rose 44% year on year in the first quarter to 22.9 billion kilowatt-hours.

Industry-pattern observations: National-level coordination between power planners and digital infrastructure groups reflects a broader trend where governments attempt to align data-centre buildout with grid decarbonization. Operators that increase on-site or contracted renewable supply commonly use market instruments such as green certificates and power-purchase agreements to demonstrate additionality and manage load timing. Integrating AI compute growth with cleaner backup systems reduces diesel reliance but requires investment in energy-storage, demand-side management, and grid interconnection capacity.

Beijing's emphasis on domestic AI software, hardware and optimisation of home-grown AI chips for energy applications mirrors recent policy messaging that combines industrial policy with climate targets. Observers tracking the sector will note this as part of a longer-running effort to develop domestic supply chains for critical compute hardware while limiting emissions associated with rapid AI-driven electricity demand growth.

Key indicators include regulatory guidance on how the "green certificate" and "green power trading" mechanisms will be implemented, any subsidies or procurement rules favoring domestic AI hardware in the energy sector, and follow-up technical standards for data-centre backup power. Also monitor official statistics from the China Electricity Council and the China Academy of Information and Communications Technology for updated projections of computing-related electricity demand.