China’s power demand reached an unprecedented level in 2025, with total electricity consumption surpassing 10 trillion kilowatt-hours (kWh) for the first time. The record-breaking figure highlights the scale of the country’s economic activity, industrial expansion, and accelerating energy transition, even as policymakers push for greater efficiency and cleaner power sources.

Electricity Demand Rises Alongside Economic Recovery

China’s electricity usage climbed steadily throughout 2025, reflecting a broader recovery in manufacturing, infrastructure development, and consumer activity. Heavy industries such as steel, chemicals, and cement remained major contributors, while new sectors like data centers, artificial intelligence computing, and electric vehicle manufacturing added fresh demand to the grid.

Analysts note that electricity consumption has become one of the most reliable indicators of real economic momentum in China, often revealing trends earlier than official GDP figures.

Industrial and Digital Growth Drive Power Consumption

Industrial users continued to account for the largest share of electricity usage, supported by sustained export activity and domestic investment. At the same time, China’s rapidly expanding digital economy significantly boosted power demand, particularly from cloud computing hubs and large-scale server farms.

The growing adoption of electric vehicles, heat pumps, and electrified public transport systems also contributed to higher nationwide electricity consumption, reinforcing the long-term shift away from fossil fuels.

Renewable Energy Expands but Coal Still Plays a Role

China added record levels of renewable capacity in 2025, including solar, wind, and hydropower projects, helping to meet rising electricity needs. Renewable sources supplied an increasing share of the total electricity mix, reducing carbon intensity even as overall demand surged.

However, coal-fired power plants continued to serve as a critical backup during peak demand periods, underscoring the challenges China faces in balancing energy security with climate commitments.

Implications for Climate Targets and Energy Policy

Crossing the 10 trillion kWh threshold presents both opportunities and challenges for Beijing. While electrification supports long-term decarbonization goals, higher electricity demand puts pressure on the grid, fuel supply chains, and emissions targets.

Policymakers are expected to accelerate investments in energy storage, ultra-high-voltage transmission lines, and smart grid technologies to manage future demand growth more efficiently.

Global Impact of China’s Power Consumption

As the world’s largest electricity consumer, China’s energy trends have global implications. Rising power demand affects international coal, gas, and renewable equipment markets, while also influencing global emissions trajectories.