China to power grid with record renewable energy as AI spurs demand
China expects to add a record 500 gigawatts (GW) in renewable energy capacity to its national grid this year as the rapid rise of artificial intelligence (AI) increases demand for electricity to power computing centres.
According to a report from the State Grid Energy Research Institute on Friday, over a quarter of that new capacity – or a record 140GW – will come from wind power, a source of energy that US President Donald Trump has suggested China does not use.
“They make about 95 per cent of them, the wind turbines. I have never seen a wind farm in China,” Trump said at the signing of his landmark legislation, the One Big Beautiful Bill, also on Friday.
“Why is that? Somebody check that out.”
The increase in wind power capacity is equivalent to about six times the capacity of the Three Gorges Dam and is 77 per cent more than the amount added last year.
Meanwhile, newly installed solar power capacity is expected to reach 380GW this year, up 35.5 per cent from last year.
If realised, it would be the first time for new renewable energy installations to exceed 500GW.
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According to the report, the expanded capacity is needed in part to help the national grid cope with the vast amounts of electricity required for data centres, which are expected to grow at an average annual rate of 45.2 per cent over the next five years.
At the same time, China is trying to meet its dual carbon goals of reaching a peak in carbon emissions before 2030 and carbon neutrality before 2060.
Last year, China added a record 373GW of renewable energy capacity, with the country contributing 61.5 per cent of the world’s newly installed solar capacity and 70.5 per cent of newly installed wind energy capacity, according to the International Renewable Energy Agency.
As of May, China’s installed solar power capacity reached 1,080GW, while wind power capacity stood at 570GW.
Renewable energy generated 3.46 trillion kilowatt-hours (kWh) of electricity last year, accounting for about 35 per cent of the country’s total power generation, according to the National Energy Administration.
In the United States, however, the clean energy sector is in crisis, with Trump’s legislation eliminating tax credits for wind and solar projects that start after 2027.
The move could deliver a major blow to the industry, potentially adding up to US$7 billion to its tax burden, according to the American Clean Power Association.
At the signing ceremony, Trump claimed that many of the components used in wind turbines were made in China and investing in “expensive energy” was a “waste of money”.