China's energy resilience gives it an edge in the AI race

China's data centre industry is thriving due to the nation's ability to withstand the global energy crisis, thanks to its inexpensive and plentiful electricity. A report from Nomura dated April 2 reveals that China's energy sector is nearly self-sufficient, primarily depending on coal mined within the country while swiftly adopting renewable energy, all under strict regulations. Huang pointed out that energy serves as the fundamental principle of AI infrastructure and is a critical limitation on intelligence production. This energy edge gives China a competitive advantage in the AI sector, particularly as other Asian nations experience significant vulnerabilities.