As artificial intelligence (AI) fuels growing electricity consumption in data centers, the United States and China face a common challenge: meeting escalating energy demands without compromising sustainability objectives. Experts suggest that despite competitive tensions in AI development, the two nations could benefit from examining each other’s energy infrastructure and market approaches, potentially fostering cooperation.
Richard Dasher, director of the US-Asia Technology Management Center at Stanford University, highlighted the dual nature of US-China dynamics in AI. While competition drives advancements, he sees opportunities for collaboration, stressing the value of understanding each country’s distinct energy systems. “China has very different dynamics. It’s very good for us to study each other,” Dasher noted, emphasizing how this mutual insight could open channels for exchange amid rivalry.
The surge in energy use is significant. The International Energy Agency (IEA) forecasts global electricity consumption by data centers will nearly double from 485 terawatt-hours (TWh) in 2025 to 950 TWh by 2030, with AI-focused facilities expected to triple their power demand during the same period. In the United States, data center electricity usage alone is projected to reach about 426 TWh by 2030, roughly doubling from current levels, according to the American Public Power Association.
Dasher expressed concern over the sources of this increased electricity consumption, noting that more than half of the additional capacity in the US is expected to stem from non-sustainable energy forms such as coal, natural gas, and oil. “Less than half of the predicted additional capacity in the United States is expected to come from sustainable energy sources,” he said, underscoring the environmental implications of rising AI-driven demand.
The United States has surpassed China as the world’s leading builder of natural gas-fired power plants, currently developing twice the capacity China is adding and holding nearly three times as much gas power capacity under construction, according to a recent analysis by Global Energy Monitor. In the first half of this year alone, gas-fired generating capacity aimed directly at supporting data centers in the US nearly doubled.
As both countries expand their AI capabilities and infrastructure, balancing the need for energy with sustainable practices remains a critical challenge. Experts advocate that sharing knowledge about differing energy markets and strategies could be a productive path forward, even within the broader context of technological competition.