China's Energy Capacity Growth Surpasses US Amid Global AI Demand
China's electricity capacity increased by approximately 445 gigawatts in the first 11 months of 2025, significantly outpacing the US, which is projected to add only 64 gigawatts. This growth positions China as a crucial supplier for the energy-intensive demands of AI data centers, with lower electricity prices compared to the US and EU. Meanwhile, the US and Europe face challenges in expanding their energy capacities due to regulatory hurdles and high costs.
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China's electricity capacity grew by approximately 445 gigawatts in the first 11 months of 2025, while the US is projected to add 64 gigawatts in the same year. This expansion has positioned China as a key player in meeting the increasing energy demands of artificial intelligence (AI) data centers, which are expected to consume substantial power.
The average electricity price for China in 2024 is around $100 per megawatt-hour, significantly lower than the US at $150 and the EU at nearly $250. China's energy prices are anticipated to remain stable, with a projected rise in renewable sources from 20% in 2024 to 47% by 2035.
In contrast, Europe faces high energy costs and the need for a unified energy market to remain competitive. The rapid development of China's energy infrastructure contrasts with the challenges in the US and EU, where regulatory bottlenecks and high costs hinder capacity expansion.
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