Expert Calls for Electricity-Computing Integration to Build China’s AI Edge
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China’s computing power industry is leveraging the country’s low electricity prices to build a global competitive edge, but achieving sustainable growth will require integrating fragmented electricity, computing and carbon markets, said an industry expert.
Driven by the global boom in generative AI, electricity has become the backbone for computing power. Generating one million tokens consumes about 0.1 to 0.3 kilowatt-hours, giving China’s green electricity hubs a cost advantage over Western countries, Hu Rong, general manager of CSG Digital Power Grid Research Institute Co. Ltd., said in a recent interview with Caixin.
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- China leverages low electricity prices (0.3-0.7 yuan/kWh) for computing edge; 1M tokens use 0.1-0.3 kWh.
- East demand mismatches west green power; GPU utilization <30%; computing to consume 480B kWh by 2030.
- Integrate electricity-computing-carbon markets; task shifts cut costs 10%; export bundled infrastructure amid rising overseas token calls.
- CSG Digital Power Grid Research Institute Co. Ltd.
- Hu Rong, general manager of CSG Digital Power Grid Research Institute Co. Ltd., highlights China's low electricity prices (0.3-0.7 yuan/kWh) as a computing power edge. He urges integrating electricity, computing, and carbon markets to fix regional mismatches, low GPU utilization (<30%), grid bottlenecks, and enable AI token exports.
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