AI race comes down to power and data centres – and China has the edge, says unicorn hunter
AI is now a race to build data centres and secure electricity, says investor Allen Zhu, who argues China’s energy push puts it ahead
China is likely to overtake the United States in artificial intelligence within a decade because of its faster buildout of the power and data-centre infrastructure that AI relies on, according to a veteran Chinese investor.
“It’s much easier [for China] to catch up on algorithms and AI models than [for the US] to build up the data centres and power plants [that run AI],” said Allen Zhu Xiaohu, managing director at GSR Ventures, on a recent podcast.
“AI competition is really a competition in data centres and electricity supply and China has a significant edge there,” said Zhu, a well-known “unicorn hunter” whose investments span Chinese start-ups valued at more than US$1 billion, from ride-hailing giant Didi Chuxing to lifestyle social network RedNote.
His view echoes growing concern in the US over an approaching power shortfall for AI data centres. A report published in June by the US think tank Rand said the surge in computing demand was creating “exceptional” pressure on America’s power grid, making it hard to secure reliable electricity supplies for new AI facilities.
Zhu said China had made the right decision by accelerating the construction of nuclear power plants and photovoltaic projects to provide cleaner energy for its digital economy.
He also praised Chinese AI start-up DeepSeek, saying it had helped narrow the gap with the US and made a major contribution to global AI progress.