China’s GEC update: What it means for data centers

For the last several years, China has been rolling out policies designed to make new data centers efficient, sustainable, and circular. 

In March 2025, the country released a new set of policy guidelines that tighten expectations for sustainability. These updates, alongside changes to the Green Electricity Certificate (GEC) system, include an explicit mandate that pushes newly built national hub data centers to hit even higher sustainability targets by 2030. 

The new mandates create stricter regulatory requirements around renewable energy use and reporting. But they also create opportunities for greater energy efficiency, more transparent operations, and faster progress towards your sustainability goals. Here’s how data centers can prepare for this change. 

China is facing a growing electricity demand, especially from data centers. The International Energy Agency wrote in a 2025 report that more than half of the global electricity demand growth in 2024 came from China (a 7% increase), much of which is fueled by data centers.  

Forecasts around continued growth vary, but one thing is certain: data centers are expected to be major contributors to energy demands in the country. To account for that increased demand, China’s new policy is pushing data centers in national hubs to decarbonize faster.  

Now, new data center locations in national hub regions will need to source at least 80% of their electricity from renewable energy by 2030. That means operators will need to match renewable energy use with purchased and retired GECs to create a fully auditable and verifiable record.  

The 2030 timeline offers room to plan, but not to delay. Data centers now need to make renewable electricity sourcing a top priority, or risk compliance headaches. Here’s how you can prepare for the changes:  

• Secure renewable energy contracts—from power purchase agreements (PPAs)—that enable GEC issuance. As of March 2025, China's Green Electricity Certificate system is the only official proof of renewable electricity consumption, replacing I-RECs. 

• Plan a GEC procurement strategy to match renewable usage each year, either directly or via energy partners. 

• Implement energy tracking systems to monitor renewable inputs and verify GEC alignment. 

• Review site selection criteria. The government’s “East Data West Computing” project—which encourages the construction of new data centers in the western region of the country—favors data center growth in regions rich in renewables like Inner Mongolia or Gansu. 

• Retrofit or design for low PUE to stay ahead of energy efficiency benchmarks. Targets on energy efficiency remain in place with large-scale centers expected to meet an average PUE of 1.25 or lower by 2025. 

The new GEC rules are not just policy tweaks—they mark a shift in how China expects digital infrastructure to source and prove its electricity. China has a goal to peak carbon emissions before 2030 and reach carbon neutrality by 2060, and the new policy measures are a clear indication of how the country hopes to achieve those targets. 

As reporting becomes stricter and more transparent, GECs will play a central role in ESG strategy and investor engagement for digital infrastructure firms. For data centers, hitting energy targets will be critical for ensuring ongoing operational approval, licensing in key regions, and avoiding regulatory risk.