AI is reshaping US-China tech race – can electricity tilt the balance?

South China Morning PostCenter-RightEN 2 min read 100% complete by Luna Sun,Themis Qi,Zhang ShidongJanuary 16, 2026 at 03:00 PM

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China's State Grid plans a record $574 billion investment by 2030 to expand and modernize its power grid, aiming to integrate more renewables and increase electricity's share of energy consumption. This investment comes as AI's energy demands surge, with China and the US projected to account for nearly 80% of global growth in data center electricity consumption by 2030. While China leads in electricity generation due to government planning, the US faces potential power shortages, prompting tech companies to secure their own energy supplies for AI development. Some analysts believe China's electricity advantage could be a strategic asset in the US-China tech rivalry, particularly in the AI race where computing power relies on chips, algorithms, and electricity.

Key Entities & Roles

Key Player Opposition Context

Guangdong Society of Reform 35% Peng Peng 40% Meta 50% Google 50% International Energy Agency 60% Artificial Intelligence ×370% State Grid Corporation of China 80% United States ×685% China ×790%

Keywords

ai 100% us-china tech race 90% electricity 90% power grid 80% data centers 70% energy consumption 70% power shortage 60% renewable energy 60% strategic asset 50% computing power 40%

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Neutral

Score: 0.10

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South China Morning Post

Political Lean

Center-Right (0.50)

Far LeftCenterFar Right

Classification Confidence

90%

Geographic Perspective

China

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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ai us-china tech race electricity power grid data centers energy consumption power shortage renewable energy strategic asset computing power

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