Booming solar and wind farms in the Gobi desert can help China compete with the U.S. in the AI race, industrial expert says. In the vast expanse of the Gobi and other deserts in northwestern China, a “world-leading” electricity production and transmission network is taking shape. The scientists and engineers at the helm of this energy revolution estimate that the existing installed capacity for power generation in northwestern China is almost 500 gigawatt. When combined with the significant Gobi desert area in nearby Inner Mongolia, the figure is 600 GW. In comparison, all United States power plants combined produced about 1,100 GW at the end of 2022, according to the U.S. Energy Information Administration. Furthermore, more than half these energy facilities in northwestern China are fueled by forces of nature: wind and solar energy. Despite the unpredictability of renewable sources, these green power plants achieve an average utilization efficiency over 95%. Until now, no other large regional power grid has seamlessly integrated such a substantial portion of renewable energy while maintaining such high utilization rates throughout the year.
Northwest China comprises five inland provincial areas, spanning more than 3 million sq km, an area larger than India. The region is rich in natural resources, including oil, coal and an abundance of green energy sources. It is the source of 60% of China’s solar energy and one-third of its wind power. The installed capacity of renewable energy in the region has reached 230 GW, with half transmitted over 10 ultra high-voltage direct current transmission lines to densely populated eastern coastal provinces. China’s northwest power grid has surpassed the EU in core renewable energy utilization, reaching world-leading levels. China has built the world’s most advanced high-voltage long-distance direct current transmission lines, effectively reducing power loss during long-distance transmission.
An AI entrepreneur in Beijing said energy supply would be pivotal in the looming competition for national strength between China and the U.S. The Biden administration, in a bid to stifle China’s AI progress, has banned the sale of cutting-edge AI chips to China. “The advantage of these chips lies mainly in their slightly lower power consumption. But as China’s electricity supply grows, Chinese firms can use less advanced chips to achieve similar AI training results,” said the entrepreneur, who asked to remain anonymous. “The increased electricity costs are negligible compared to the overall investment in the AI race.” Before the Covid pandemic, China’s power generation capacity was twice that of the U.S.; now, it is nearly three times as much. U.S. electricity prices rose 20% from 2021 to 2023 because of inflation while China’s have remained steady. The Chinese government is forging ahead with plans to build data centers and AI servers in energy-abundant western regions, aiming to bolster the global competitiveness of tech giants such as Huawei, the South China Morning Post reports.
