China bets on AI to power its green transition

China is increasingly leveraging artificial intelligence (AI) to accelerate its shift towards renewable energy and reduce carbon emissions.

In Chifeng, northern China, Envision, a green-energy company, operates a state-of-the-art factory that produces hydrogen and ammonia using renewable electricity, with AI playing a critical role in optimizing the process.

This example highlights a broader national strategy where AI is integrated into energy production and management to enhance efficiency and sustainability.

Projections indicate that by 2030, AI data centers in China could consume over 1,000 terawatt-hours (TWh) of electricity annually, underscoring the significant energy demands of AI technologies themselves.

To address this, China has launched an "AI-plus-energy" strategy aimed at embedding AI into the power grid by 2027, enabling smarter energy distribution and consumption.

Despite AI's potential to improve energy systems, its carbon footprint is expected to peak at 695 million tonnes by 2038, reflecting the environmental costs of large-scale AI deployment.

Cities like Shanghai are also adopting AI-driven initiatives to optimize energy use and reduce emissions.

China's approach illustrates the dual challenge of harnessing AI for environmental benefits while managing its substantial energy requirements.

The integration of AI into renewable energy production and grid management could serve as a model for other nations seeking to balance technological advancement with climate goals.

However, careful planning and innovation will be necessary to mitigate AI's own environmental impact as its use expands.