China Pushes for Renewable Energy for AI Data Centers Amid Peak Demand Forecasting Challenges
In its effort to advance artificial intelligence (AI) and data center development, China is setting targets to power the majority of these facilities with renewable energy by 2030. However, grid operators and industry experts are raising concerns about the feasibility of this plan, particularly due to difficulties in forecasting peak demand from these massive energy-consuming centers.
National Strategy and Growing Concerns
According to Reuters, China views the use of renewable energy to power data centers as a strategic priority. Nevertheless, analysts and industry officials suggest that this target may not be achievable as planned.
"To our knowledge, data centers cannot adjust much in terms of electricity load," Reuters quoted Pei Shanpeng, Director of the State Power Investment Corporation, speaking at a recent industry conference in Beijing. "GPUs are very expensive, so once purchased, operators want to use them as quickly and intensively as possible," the official added.
Technological Solutions: Underwater Data Centers
To address energy challenges, China has launched the world's first offshore wind-powered underwater data center. The Shanghai Lingang Underwater Data Center project, with a capacity of 24 MW, was developed by HiCloud Technology and state-owned China Communications Construction Group.
The center utilizes seawater for cooling and renewable energy to reduce demands for energy, water, and land resources. This represents a significant technological advancement in integrating renewable energy with data center infrastructure.
Current Energy Landscape
According to a 2023 report by the International Energy Agency (IEA), electricity supplied to data centers in China primarily comes from coal, accounting for nearly 70% of the mix. This is followed by renewable energy at nearly 20%, nuclear at about 10%, and natural gas making up the remainder.
| Energy Mix for Chinese Data Centers (2025) | |
|---|---|
| Coal | ~70% |
| Renewable energy | ~20% |
| Nuclear | ~10% |
| Natural gas | Remainder |
Future Projections and Challenges
The IEA projects that solar and wind power will add nearly 90 TWh of additional electricity for data centers by 2030. "This growth is supported by the increasing share of renewable energy in the power grid, provincial-level regulations on renewable energy quotas, and policies prioritizing data center construction in western China, which is rich in renewable energy resources," the IEA stated.
However, analysts and industry officials still argue that the data center sector is not well-suited to renewable energy due to a lack of transparency regarding peak demand from these large energy-consuming facilities. The issue becomes more complex as demand from AI data centers continues to grow, while cloud service providers and AI companies continuously expand their operations.
Conclusion
While China is actively promoting the use of renewable energy for data centers, challenges in demand forecasting and load adjustment capabilities remain significant barriers. The implementation of innovative technological solutions like underwater data centers is a creative step forward, but achieving the 2030 strategic target will require policymakers and the industry to address fundamental issues in demand forecasting and energy management.
| Projected Additional Renewable Energy for Chinese Data Centers (By 2030) | |
|---|---|
| Solar power | Major portion of 90 TWh additional |
| Wind power | Major portion of 90 TWh additional |
| Supporting factors | Increasing renewable share in grid, provincial renewable quotas, western China development policies |