China now has 3.75 terawatts of power generation capacity, nearly three times more than the U.S., which has 1.30 terawatts, according to the power energy capacity cited by market commentator The Kobeissi Letter on Friday.
China currently has 34 nuclear reactors under construction, more than the next nine countries combined, according to The Kobeissi Letter post on X. Nearly 200 additional reactors are planned or proposed.
In contrast, the U.S. has no large commercial nuclear reactors under construction.
China’s power generation capacity has doubled over the past eight years, The Kobeissi Letter reported.
The nation’s installed capacity surpassed 3,348 gigawatts in 2024, up 14.6% year-over-year, according to data from China’s National Energy Administration.
In 2024 alone, China added 429 gigawatts of net new capacity, with wind and solar accounting for 83% of the additions.
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The post noted the U.S. had nearly 1.3 terawatts of generation capacity in 2024.
Morgan Stanley (NYSE:MS) estimates that China will invest about $560 billion in power grid projects by 2030, while the World Economic Forum reported in its December report that over $80 billion was invested in 2024 alone.
Strategic Edge in AI
China’s rapid grid expansion and large renewable energy investments are giving the country a strategic edge in the AI race, as advanced AI development increasingly relies on abundant, reliable power.
Goldman Sachs (NYSE:GS) has previously warned that the U.S. power grid crisis could severely limit AI growth, highlighting how China’s energy advantage is becoming a key differentiator in technological development.
Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk called the U.S. power situation a “major competitive disadvantage,” responding to The Kobeissi Letter’s report.
Research also shows that U.S. data‑center power demand is rising faster than the grid can handle, with record spending still struggling to resolve transmission bottlenecks amid the AI boom.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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