China is seeking to use its Renewable energy capacity as an advantage in the global race to build the data centers needed for artificial intelligence. The country’s wind, solar and battery industries could help supply electricity more cheaply and allow facilities to be developed faster by limiting reliance on traditional grid connections.
Envision Energy, China’s second-largest wind turbine supplier, is testing this approach at a data center campus in Ulanqab, Inner Mongolia. The facility began operating in August with renewable electricity supplied directly to the site. Envision says it could become the world’s largest standalone AI data center, with plans to expand beyond 2 gigawatts of capacity. The company also says customers can secure electricity rates 20 percent below grid prices for 10 years.
The project reflects a broader difference between China and the United States in addressing AI’s rising energy needs. China is targeting renewable sources for more than 80 percent of the electricity consumed by new data centers in its major computing hubs. In the United States, the Trump administration has removed a requirement that AI data centers built on federal land be paired with clean-energy generation.
China plans to increase its AI computing capacity more than sixfold by 2030. Its computing centers used about 170 terawatt-hours of electricity in 2025, equivalent to 1.6 percent of national consumption. Beijing expects that figure to reach approximately 800 terawatt-hours, or about 6 percent of total electricity use, by 2030.
The country also plans to raise annual renewable electricity generation from 4,000 to around 6,000 terawatt-hours. Between 2021 and 2025, renewable generation was about 20 percent higher than the government’s target, according to the report.
China’s ability to expand generation quickly is another part of its strategy. In 2025, the country added an estimated 540 gigawatts of power-generation capacity, with more than 80 percent coming from renewable sources. The United States added 54 gigawatts during the same period, 60 percent of it renewable.
Analysts cited in the report said China’s strong manufacturing base for solar equipment and batteries makes it easier to provide dedicated renewable power for data centers. Kyle Chan of the Brookings Institution’s John L. Thornton China Center said China was attempting to expand computing infrastructure without sacrificing its energy-transition goals.
Much of the development is being directed away from major population centers through the “East Data, West Computing” initiative, launched in 2022. The program encourages computing infrastructure to be built in western regions with more available land and renewable resources.
Inner Mongolia is a prominent example. The region is sparsely populated and has significant wind and solar potential. Its regional government said in June that Inner Mongolia accounted for 57 percent of China’s wind resources and 21 percent of its solar resources.
The United States is also experiencing rapidly rising electricity demand from data centers. Lawrence Berkeley National Laboratory estimated that U.S. data centers consumed 176 terawatt-hours in 2023, or about 4.4 percent of national electricity use. A 2024 projection put annual consumption at between 325 and 580 terawatt-hours by 2028.
Wood Mackenzie expects the United States to add between 13.2 and 16.4 gigawatts of gas-fired generating capacity annually from 2026 through 2035, depending on demand growth. That would be more than three times the annual average added between 2023 and 2025. The increase could undermine progress in reducing power-sector emissions.
Data center expansion has also encountered greater public opposition in the United States. A Washington Post-ABC News-Ipsos poll found that 72 percent of Americans opposed building data centers in their communities, with concerns including higher electricity bills. In China, the report said, construction has not prompted a comparable backlash because many facilities are located far from population centers and have not raised retail power prices.
The United States retains advantages in large AI models and advanced chips, while China is seeking to capitalize on its ability to build energy infrastructure quickly and at scale. Both countries are using their existing strengths to address weaknesses in the competition, but China’s ability to maintain its renewable-energy Edge will depend on whether it can keep pace with its ambitions for AI computing capacity.
Sources: Inside Climate News.