Elon Musk at Davos 2026: China’s Solar Surge Poised to Triple US Power Generation Capacity

At the 56th annual session of the World Economic Forum (WEF) in Davos, held in early January 2026, Elon Musk, the chief executive of Tesla and SpaceX, delivered a compelling address regarding the shifting global energy balance. Musk focused on the implications of this shift for international dominance in the field of Artificial Intelligence (AI). He specifically highlighted the extraordinary growth of electricity generation in the People's Republic of China, which has been largely driven by the massive deployment of solar energy infrastructure. According to Musk, this rapid expansion places China at the forefront of providing the energy resources required for the next generation of power-hungry AI technologies.

A central theme of Musk’s presentation was the prediction that by the end of 2026 or the start of 2027, China's projected electricity output could exceed that of the United States by a factor of three. This disparity, he argued, would provide a decisive competitive advantage in the global race for AI leadership. By the close of 2025, China's total power grid capacity had reached 3.75 terawatts, aligning with data that showed the country's total installed power plant capacity at 3.75 billion kW as of late October 2025. In comparison, the United States maintained an estimated capacity of approximately 1.30 terawatts. This follows a trend seen in 2024, where China accounted for 33.2% of global power production, while the U.S. share stood at 14.2%.

During the forum's sessions, which included a notable dialogue with BlackRock CEO Larry Fink, Musk identified energy as the primary bottleneck for the exponential advancement of AI. He pointed out that while the production of specialized chips is accelerating, the availability of electricity to power them is not keeping pace. Musk observed that in the United States, the expansion of solar capacity is being hindered by significant structural obstacles. He specifically linked these delays to high import tariff barriers, which he claims are artificially inflating the costs of deploying renewable energy solutions across the country.

The current U.S. trade policy, intended to protect domestic manufacturers, has created a complex environment for renewable energy developers who have long relied on affordable international supply chains. In 2024, approximately 75% of all solar cells and modules utilized in the United States were imported. However, the tariffs maintained and introduced by the administration of President Donald Trump—including a 50% duty on Chinese imports and ongoing investigations into Southeast Asian trade practices—have resulted in increased project costs and significant disruptions to the supply chain.

In contrast, China's renewable energy sector continues to demonstrate record-breaking growth. By the end of 2025, China's installed solar power capacity reached 1.2 billion kW, representing a 35.4% increase within a single year. The nation's total renewable energy capacity, combining solar and wind, has now exceeded 1.841 TW, accounting for 47.3% of the country's entire energy system. Notably, the installed capacity of China's solar and wind farms surpassed that of coal-fired plants in the first half of 2024. This energy surge is vital for the AI sector, as the International Energy Agency (IEA) forecasts that data center electricity consumption will reach 1,000 TWh by 2026, a figure comparable to the total annual electricity usage of Russia in 2024.

Ultimately, Musk’s statements at the Davos forum emphasize that energy infrastructure, rather than just raw computing power, will be the determining factor in establishing technological supremacy in the coming years. His analysis highlights a stark divergence between the record-setting growth of power generation in China and the regulatory and economic hurdles currently slowing the energy transition within the United States.