China has released a comprehensive action plan that plans to make green electricity a key component in the operation of new data center projects.
The action plan, written jointly by four major regulatory bodies, will be part of Beijing’s broader efforts to align the rapid expansion of new AI infrastructure with national carbon targets.
The announcement comes as the country is witnessing a huge increase in power consumption due to the AI ​​boom.
Under the scheme, operators are encouraged to use green certificates and green electricity trading markets to meet these requirements.
The document containing 29 measures also calls for replacing diesel backup generators with cleaner alternatives and promoting the adoption of domestic AI chips and software specifically adapted for the energy sector.
Regulators said the goal was to “create a new development pattern of mutual empowerment and deep integration between AI and energy” by 2030.
To manage costs and supply, data center expansion is being driven toward northern and western Chinese provinces, where wind and solar resources are more abundant and cheaper.
Talking about AI-fueled electricity consumption in China, it grew by 44 percent year-on-year in the first quarter of 2026. Against the backdrop of the rapid boom, data centers could consume more than 400 billion kilowatt-hours annually by 2030, according to estimates from the China Academy of Information and Communications Technology.
According to the China Electricity Council, electricity currently accounts for 50% to 70% of the operating expenses of some data centers, making energy efficiency a financial necessity as well as an environmental necessity.
The move highlights how China is attempting to align its AI ambitions with climate goals, especially at a time when the US and Europe are facing significant grid stress due to massive energy requirements.
