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China explores nuclear power to drive AI

Tech giants such as Microsoft, Google considering small modular reactors

By MA SI and CHEN BOWEN in Haikou | CHINA DAILY | Updated: 2026-04-09 09:05
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Rafael Mariano Grossi (center), director-general of the International Atomic Energy Agency, visits the Linglong One project in Hainan province on April 8, 2025. CHINA DAILY

China is exploring leveraging nuclear energy to meet artificial intelligence's huge demand for electricity, as the token economy becomes the latest buzz word sweeping across the global tech industry.

A token is the fundamental unit of data processed by an AI large language model. The momentum for the growth of the token economy grew stronger after Nvidia CEO Jensen Huang described tokens as "the new commodity" during a recent conference, and global tech companies are ramping up efforts to build their AI infrastructure.

Wei Zhigang, chairman of CNNC Hainan Nuclear Power Co, said, "As AI triggers unprecedented global demand for computing power, the ultimate constraint has become clear: the need for vast, stable electricity supplies."

Tech giants such as Microsoft and Google are actively exploring small modular reactors, or SMR, to power AI data centers.

"We are seeing strong demand from major power users like computing centers," Wei said, adding that the company's Linglong One — the world's first onshore commercial SMR — is nearing completion, with 90 percent installation completed and core equipment undergoing adjustments.

Linglong One plans to commence commercial operations this year.

"One of the key advantages of SMRs such as Linglong One is their flexible placement. We can deploy them right where computing power is needed, enabling close load-matching. The international focus on SMRs is precisely because they are seen as a crucial power source for future computing needs. The endpoint of computing power is electricity," Wei added.

China is positioning itself at the forefront of this convergence. Wei's company is exploring building a nuclear-powered zero-carbon industrial park in Hainan province's Changjiang Li autonomous county, with the aim of creating a "nuclear energy plus computing power" pilot zone to help solve one of the most pressing challenges the world faces in applying AI.

The numbers tell part of the story. Upon completion, the reactor will generate 1 billion kilowatt-hours annually, sufficient to power 526,000 households while reducing carbon dioxide emissions by 880,000 metric tons — equivalent to planting 7.5 million trees.

But the true significance lies in what Linglong One represents. Linglong One is the first onshore commercial SMR to pass a safety review by the International Atomic Energy Agency.

"It's like the evolution from desktop computers to laptops," Wei said.

"Traditional large reactors are like desktop computers with separate components. Linglong One is an all-in-one laptop — compact, convenient and safe. Achieving this integration required overcoming significant technical bottlenecks. SMRs can also be installed on ships in the future, creating movable power plants — true mobile power banks. They can go wherever needed, maximizing our ability to meet diverse client demands."

More than 1,000 visitors from almost 90 countries and regions have traveled to Hainan to inspect the reactor, including Rafael Mariano Grossi, director-general of the IAEA.

Grossi said at an earlier conference that the nuclear power sector is destined to be the energy partner of the AI revolution.

"Only nuclear energy can meet the five needs of low-carbon power generation, round-the-clock reliability, ultra-high power density, grid stability and true scalability," he said.

The remarks came as Chinese AI models have outpaced AI models made by the United States in terms of global usage for a fifth straight week, underscoring a growing token economy in China that is defined by scale, pricing and computing infrastructure.

According to data recently released by OpenRouter, a platform widely used by overseas developers to access AI models, from March 30 to Sunday, global weekly usage of Chinese AI models reached 12.96 trillion tokens, up 31.5 percent week-on-week, while AI models made by the US logged 3.03 trillion tokens, rising only 0.76 percent.

The expanded usage of Chinese AI models outpaced that of their US counterparts for the fifth consecutive week, OpenRouter said.

The Chinese government has included computing-electricity synergy as a national priority in its 2026 Government Work Report as it ramps up efforts to build its AI infrastructure.

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