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China is integrating AI into its energy system to enhance the production and management of renewable energy. In Chifeng, a factory operates on a closed system powered by local wind and solar energy, utilizing an AI-driven control system developed by Envision to adjust production in real time based on weather conditions.

This approach supports China's hydrogen and ammonia production goals, crucial for reducing emissions in industries like steelmaking. In September, Beijing announced an 'AI+ energy' strategy to connect AI with the energy sector, aiming for pilot projects and extensive AI application by 2027.

Cities like Shanghai are experimenting with virtual power plants to coordinate multiple energy sources, achieving significant demand reductions. However, rising power consumption from AI data centers poses challenges to climate goals, prompting regulators to implement efficiency measures and promote renewable energy use. Despite potential emissions increases, AI's careful application may aid in achieving China's emissions reduction targets.