The operation of Unit 1 at the San'ao Nuclear Power Plant in Zhejiang province represents a watershed moment for China's energy sector, as the unprecedented inclusion of private capital in national nuclear infrastructure is seen as providing a critical clean energy boost for the Yangtze River Delta's accelerating shift toward an AI-driven and digital economy.

Managed by China General Nuclear Power Group, or CGN, the country's first privately backed nuclear power project and the region's first Hualong One unit officially began generating electricity last week.

The milestone unit is expected to generate over 9 billion kilowatt-hours of electricity annually, meeting the daily production and residential power demands of more than 1 million residents, while supplying the zero-carbon baseload power required to sustain energy-intensive data centers, the company said.

The San'ao project marks a historic milestone for China's energy sector, as it breaks the traditional model of exclusive State investment in nuclear power, said Lin Boqiang, head of the China Institute for Studies in Energy Policy at Xiamen University.

Nuclear power requires massive upfront capital and features a long investment cycle. By bringing in private enterprises, the project proves that mixed-ownership models can inject new financial vitality and operational efficiency into national strategic infrastructure, while allowing private capital to share in the long-term dividends of the country's green transition, he said.

As the region accelerates its shift toward an artificial intelligence-driven and digital economy, intermittent renewables like wind and solar alone cannot sustain the immense, 24/7 power requirements of massive data centers, experts have said.

The San'ao project provides the critical, zero-carbon baseload power required to keep China's premier tech hub running smoothly without compromising the nation's dual-carbon goals, according to Lin.

Xing Yiteng, deputy director-general of the department of development and planning at the National Energy Administration, said that energy investment maintained robust growth in the first quarter of this year.

Furthermore, private enterprises deepened participation in key national energy research initiatives during the first three months of the year, he said.

According to CGN, since the inception of the mega-project, the company has collaborated with approximately 2,000 private enterprises, achieving multiple breakthroughs in independent core technology, intelligent engineering construction and innovative financing models.

Geely Technology Group holds a 2 percent stake in the project, setting a benchmark for the participation of private capital in major national energy infrastructure.

In addition, the project has localized 24 key pieces of core equipment for the first time, including the main steam relief control valves and nuclear-grade pressure and temperature switches, showcasing the robust competitiveness of China's entire nuclear power industry chain.

As global energy landscapes shift and the demand for AI computing power undergoes explosive growth, the Yangtze River Delta requires massive, uninterrupted energy support.

"The region has the nation's most vigorous demand for computing power and the most complete industrial supply chain, creating an urgent, sustained need for stable, clean and efficient baseload electricity," said Lin.

Once all six units in the San'ao project are fully operational, their combined annual power generation capacity is expected to exceed 54 billion kWh. This output is equivalent to reducing standard coal consumption by over 16.35 million metric tons and cutting carbon dioxide emissions by nearly 50 million tons annually, according to CGN.

zhengxin@chinadaily.com.cn