The China data centre advantage: hype versus reality
“China’s power sector certainly reflects abundance and rapid capacity additions, but the story of how this affects the data centre industry is more complex. China’s electricity prices are comparable to those in the US and lower than in Europe. Though the country’s renewable energy capacity is immense and growing rapidly, China’s power system is plagued by institutional bottlenecks, rigid pricing structures and market inefficiencies. Power lines and power plants can go up more quickly than elsewhere, and excess capacity can result, but the effect on data centre cost and operations is less clear. Even with abundant energy, there are even some regions in eastern China where data centre approvals and interconnections face hurdles and delays.”
There’s a better idea than a China like program for the U.S. It’s good old fashioned U.S. entrepreneurial creativity. Let’s unleash that in the electricity sector. That’s CRE.
