China’s secret weapon in the AI ​​race with the USA? Lots of cheap energy

In the race with China for AI supremacy, the US dominates when it comes to access to the most advanced semiconductors.

But when it comes to powering the massive data centers powered by AI chips, China has a clear advantage.

That’s because data centers, the sprawling computing facilities needed to train and run AI models, require large amounts of energy.

According to the International Energy Agency (IEA), a typical data center can consume as much electricity as 100,000 homes, while next-generation “hyperscale” facilities can devour as much electricity as two million homes.

China’s access to an abundant supply of cheap electricity puts it in an ideal position to meet such enormous energy needs.

China already generates more than twice as much electricity as the United States, a lead that is expected to widen amid aggressive government investment in the country’s energy grid.

BloombergNEF, a research provider, estimates…