Stock Markets March 19, 2026

China’s AI-driven power demand could hit 7% of national consumption by 2030, NDRC researcher says

Data center loads, renewables build-out and storage expansion set to reshape power mix and regional dispatch rules

By Derek Hwang
China’s AI-driven power demand could hit 7% of national consumption by 2030, NDRC researcher says

A senior director at an NDRC research institute projects that China’s electricity use by data centers will climb from roughly 300 billion kilowatt-hours today to 1 trillion kilowatt-hours by 2030, equivalent to about 7% of national power consumption. The projection accompanies forecasts for rapid renewable capacity additions, deeper integration of storage, rising green certificate prices and calls for region-specific curtailment rules.

Key Points

  • Projected rise in data center electricity use from about 300 billion kWh to 1 trillion kWh by 2030 - impacts data center operators, power utilities and grid planning.
  • Renewables-led supply growth: more than 80% of incremental electricity demand in 2026-2030 expected to come from new wind and solar capacity - affects renewable developers, equipment suppliers and transmission planners.
  • Energy storage and market evolution: independent storage capacity target of 180 GW by 2027 could be met early, and green certificate prices and solar-plus-storage parity are rising - implications for storage manufacturers, project financiers and energy markets.

A senior director at a research institute affiliated with China’s National Development and Reform Commission (NDRC) outlined forecasts showing a dramatic rise in electricity consumption from data centers over the remainder of this decade. The expert estimated that current data center power use of around 300 billion kilowatt-hours would expand to roughly 1 trillion kilowatt-hours by 2030, representing about 7% of the country’s total power consumption.

The same expert highlighted a significant cost advantage for domestic AI computing, estimating costs in China at below $3 per million tokens compared with about $15 per million tokens abroad. Those lower operating costs are presented alongside expectations for the power system to adapt, with more than 80% of incremental electricity demand between 2026 and 2030 expected to be supplied by newly built renewable resources.

Capacity additions are forecast to be substantial. Annual wind and solar installations are projected to top 250 gigawatts during 2026-2030, while 2026 alone is expected to see roughly 120 gigawatts of wind and between 180 and 220 gigawatts of solar. Offshore wind, after a period of slowdown, is projected to recover to over 10 gigawatts per year, a rebound the expert attributed to improved project readiness and clearer policy implementation.

Offshore development is also expected to shift geographically and technically. The expert anticipates a gradual move toward deeper-sea projects, with deep-sea installations accounting for roughly 50% of new offshore wind capacity by 2030.

Market signals for green electricity are strengthening. The green certificate market is expanding, with average transaction prices in the second half of 2025 rising by about 90% compared with the first half of 2025. Over the longer term, green certificate prices are projected to increase to between 1 and 2 Chinese yuan cents per kilowatt-hour by 2030.

Cost metrics for newly built utility-scale projects in 2025 were cited as follows: solar levelized cost of energy (LCOE) in the range of 0.136 to 0.242 yuan per kilowatt-hour and wind in the range of 0.12 to 0.25 yuan per kilowatt-hour. After accounting for transmission fees and government funds, the expert estimated that the all-in power cost for data centers in northern China would be roughly 0.30 to 0.35 yuan per kilowatt-hour.

The expert expects solar-plus-storage to become the dominant generation model, with system-level cost parity anticipated by 2030. The ratio of renewable generation paired with storage is forecast to rise from below 10% at present to over 20% by 2030. Independent energy storage is singled out as a major growth area; the capacity target of 180 gigawatts by 2027 is judged likely to be achieved as early as this year.

On system operation, renewables are expected to play a larger role in meeting peak demand. By 2030, renewable energy is projected to support about 20% of peak load, up from roughly 10% today, driven by improvements in forecasting, coordination and intelligent dispatch.

The expert also called for a shift away from uniform nationwide curtailment limits toward region-specific guidance. In eastern China, curtailment below 5% is considered reasonable, whereas the previously strict 5-10% caps in western and Three North regions could be relaxed to around 15% to better reflect local conditions.

Finally, the expert identified an industry inflection point around 2027, when annual installations are expected to stabilize at more sustainable levels - in excess of 200 gigawatts of solar and 120 gigawatts of wind per year.

Risks

  • Policy and project readiness risk: the projected recovery and expansion of offshore wind to over 10 GW per year depends on improved project readiness and clearer policy execution - affecting offshore developers and supply chains.
  • Curtailment and regional mismatch risk: maintaining rigid nationwide curtailment thresholds could impede efficient use of renewable generation; regional rules are recommended, and failure to adapt could raise operational and market risks for generators and grid operators.
  • Execution risk for renewable and storage build-out: the scenario where more than 80% of incremental demand is met by new renewables and early achievement of the 180 GW storage target relies on timely installations and coordination - this influences manufacturers, financiers and grid planners.

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