Huawei is betting that the future of AI infrastructure will depend as much on energy systems as on computing power
Updated
May 19, 2026 5:43 PM
Blue light painting with a lightbulb. PHOTO: UNSPLASH
As AI companies build larger models and deploy more AI agents, the industry is running into a new constraint: electricity. The challenge is no longer just about computing power. It is increasingly about how to supply, manage and sustain the energy needed to run AI infrastructure at scale.
That was the central argument behind Huawei’s latest AI data center strategy unveiled at its Global AIDC Industry Summit in Dongguan.
The company introduced what it calls a grid-interactive AIDC strategy, focused on redesigning AI data centers around power supply, cooling systems and energy management. AIDC refers to AI data centers built specifically for large-scale AI computing workloads.
The announcement reflects a broader shift happening across the industry. As AI systems grow larger, data centers are consuming more electricity and generating more heat than traditional computing infrastructure was designed to handle. Companies are now being forced to rethink not just chips and servers, but the physical systems supporting them.
Huawei argues that future AI infrastructure will need closer coordination between computing systems and energy grids. The company says traditional data center designs are struggling to keep up with fluctuating AI workloads, rising power density and the growing use of renewable energy sources.
Hou Jinlong, Director of the Board of Huawei and President of Huawei Digital Power, said: "The booming AI industry, widely adopted large models, and numerous AI agents are creating huge energy demands, set to boost the global AIDC capacity. Electricity is essential for computing; energy is the foundation for AI long-term development. Computing and electricity will deeply synergize and empower each other, progressively building an integrated framework that brings together new power systems and AI infrastructure."
A large part of Huawei’s strategy focuses on power architecture. AI workloads can create sudden spikes in electricity demand, especially in high-density computing environments. To manage that, Huawei says it plans to develop new power systems that combine grid-friendly UPS infrastructure with energy storage technologies.
Cooling is becoming another major pressure point. AI servers generate significantly more heat than traditional enterprise systems and Huawei says liquid cooling is now becoming essential for large-scale AI deployments. The company introduced a liquid cooling system designed to improve long-term thermal management inside high-density AI environments.
Huawei is also pushing modular construction methods to reduce deployment times for AI data centers. Instead of building infrastructure entirely onsite, parts of the system can be prefabricated and tested in factories before installation.
Bob He, Vice President of Huawei Digital Power, said: "The global AI industry is booming, and the token demand surges. As such, the AIDC industry is entering the Token era."
As part of that shift, Huawei introduced a proposed measurement system called the TokEnergy Index. The company says the metric is designed to measure the relationship between energy consumption and AI computing output, rather than relying only on traditional data center efficiency metrics such as PUE.
The broader message behind the strategy is that AI infrastructure is becoming an energy engineering problem as much as a computing problem. As global demand for AI continues to rise, companies across the sector are beginning to realise that the future of AI may depend not only on better models, but also on whether power grids and data centers can keep up with them.
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A planned city explores how real-time data and automation can shape everyday urban systems
Updated
May 1, 2026 2:25 PM
A package being delivered by drone using the Meituan app. PHOTO: ADOBE STOCK
A newly built district in northern China is being used to test how cities function when infrastructure, data and automation are integrated from the ground up. In Xiong'an New Area, traffic systems, public monitoring and urban services are designed to respond in real time rather than operate on fixed rules.
At the centre of this is a traffic management system powered by more than 20,000 roadside sensors. These track traffic flow, vehicle types and congestion levels, feeding data into an AI system that adjusts signals in milliseconds. Official figures show this has reduced the average number of stops per vehicle by half. The system also detects equipment faults, sends alerts and generates maintenance requests without manual input.
Automation extends beyond roads. Drones are deployed across the city for routine monitoring. In the Rongdong district, roadside units release drones that follow fixed patrol routes of around 1.27 kilometres, completing each run in about five minutes. They are used to monitor traffic, detect illegal parking and inspect public spaces. Similar systems operate in parks to track water levels and issue flood alerts, while in some work zones, drones transport packages of up to five kilograms between buildings.
These applications reflect a broader approach: integrating multiple systems into a single, connected urban framework. Unlike older cities where infrastructure evolves in layers, Xiong’an has been built with coordinated digital systems from the outset. This allows transport, maintenance and public services to operate through shared data systems rather than in isolation.
Alongside this, the area is being developed as a technology and innovation hub. Since its establishment in 2017, it has attracted more than 400 branches of state-owned enterprises and over 200 companies working in sectors such as artificial intelligence, aerospace information and digital technology.
This ecosystem supports projects like the “Xiong’an-1” satellite, which completed research, design, production and testing within eight months of regulatory approval in 2025. The satellite is currently undergoing testing, with a planned launch expected in the second quarter of 2026. It forms part of a broader push to build an aerospace information industry in the region.
The area is also structured to bring companies, research and production closer together. At the Zhongguancun Science Park in Xiong’an, which spans 207,000 square metres, 269 technology companies operate across sectors including AI, robotics and biotechnology. The park hosts more than 2,700 researchers and industry professionals, with companies organised into sector-specific clusters.
Policy support continues to shape this development. In early 2026, the State Council approved the upgrade of Xiong’an’s high-tech industrial development zone to national level status, with a focus on attracting high-end research and strengthening links between scientific development and industrial output.
Xiong’an is positioned as a testing ground for how smart city systems can be deployed at scale. The model depends on coordinated planning, integrated infrastructure and sustained policy support. Whether these systems can be adapted to existing cities, where infrastructure and governance are more fragmented, remains an open question.