China plans to embed AI in energy infrastructure to optimise power grid efficiency

AdvertisementChina energy securityEconomyChina EconomyChina plans to embed AI in energy infrastructure to optimise power grid efficiency

Top energy firms and tech companies are being drawn into state-backed pilots to align surging computing demand with more efficient energy usage

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Carol Yangin BeijingPublished: 4:14pm, 28 May 2026Updated: 5:15pm, 28 May 2026

With victory in the global race to build artificial intelligence capacity heavily dependent on resilient power systems, China is urging domestic enterprises to launch pilot projects that integrate the cutting-edge technology into the energy sector.

To support the plan, Beijing has released an official list of application scenarios ranging from smart grids to autonomous coal mines. Energy enterprises would be able to partner with artificial intelligence providers and jointly submit proposals for state-backed pilot projects, the National Energy Administration (NEA) announced on Wednesday.

Attendees at a Tuesday conference, where the scenario list was released, included state-owned giants such as PetroChina, State Grid Corporation of China and China Energy Investment Corporation, as well as prominent private firms including Alibaba Cloud, Tencent Holdings and Envision Group.Advertisement

Alibaba Cloud is the AI and cloud computing unit of Alibaba Group Holding, owner of the South China Morning Post.

The announcement comes as soaring electricity demand from energy-intensive AI computing becomes a growing constraint worldwide. In China, the government is responding by accelerating efforts to embed the technology directly into energy infrastructure, aiming to manage surging power consumption through greater efficiency.Advertisement

The definitive list of 51 “high-value” application scenarios spanned eight core sectors, including power grids, renewables, hydropower, thermal power, coal, oil and gas.

“By spelling out these explicit application scenarios, the government is pushing the industry to move from conceptual rhetoric to concrete implementation, marking a highly significant step forward,” said Lin Boqiang, dean of the China Institute for Studies in Energy Policy at Xiamen University.

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