China pushes AI data centers to go green in new Beijing action plan

China has released a comprehensive action plan, planning to make green electricity a key component in the operation of new data center projects.

The action plan jointly authored 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 goals.

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The announcement comes as the country is witnessing a massive surge in electricity consumption driven by the AI boom.

Under this plan, operators are encouraged to use green certificates and green power trading markets to meet these requirements.

The document containing 29 measures also calls for replacing diesel backup generators with cleaner alternatives and promoting adoption of domestic AI chips and software specifically optimized for the energy sector.

The goal was to “build a new development pattern of mutual empowerment and deep integration between AI and energy” by 2030, the regulators said.

To manage costs and supply, data center expansion is being pushed toward northern and western Chinese provinces, where wind and solar resources are more abundant and cheaper.

Talking about AI-fueled power consumption in China, it rose 44 percent year-on-year in Q1 2026. As per projections of the China Academy of Information and Communications Technology, in the backdrop of rapid boom, data centers could consume over 400 billion kilowatts-hours annually by 2030.

According to the China Electricity Council, electricity currently accounts for 50% to 70% of operating expenses for some data centers, making energy efficiency a financial necessity as well as an environmental one.

The move highlights how China is making an effort to align its AI ambitions with climate goals, especially at a time when the US and Europe face significant grid strain due to massive energy requirements.