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Shanghai trial links data centers to the grid to cut peak power use
A pilot led by State Grid’s Shanghai unit reduced peak demand by 97.8 megawatts over two hours using a full coordination pipeline across 16 data center operators.
Shanghai has tested a new way to coordinate data center computing with the power grid to manage peak demand, a national first described as part of China’s broader upgrade of electricity infrastructure amid the global artificial intelligence race.
According to Jiefang Daily, cited by SCMP Economy, a pilot led by State Grid’s Shanghai subsidiary involved 16 data center operators, including Alibaba Group Holding, China Telecom’s Shanghai branch, and GDS Holdings. The trial delivered a 97.8 megawatt reduction in peak load within a two-hour window, described as the largest single city level adjustment of computing power load in China.
The computing grid coordination approach is designed to treat AI data centers like flexible shock absorbers for the electricity system. The grid can dispatch data center operations to ramp up energy intensive training when green power surpluses are available, and scale back during periods of grid strain.
The report says the trial marked the first time a Chinese city ran through the full technical pipeline of coordination at once, including modulating data centers’ operational power usage, switching to backup diesel generators when needed, and shifting computing tasks to other regions to ease load demand. SCMP Economy also notes the effort reflects rising power consumption pressures tied to AI and a growing policy view of computing power as a national utility rather than only a private resource.