Leveraging its expertise in both power and telecommunications, Huawei is making significant inroads into the energy sector with its comprehensive technological solutions, positioning itself as a key provider of foundational technologies.

August 20, Huawei Headquarters, Shenzhen.

Wen Shugang, Chairman of China Huaneng Group, and Zhong Guodong, General Manager, met with Ren Zhengfei. The presence of the top executives from this leading state-owned power generation company underscored the importance of the meeting. Ren Zhengfei remarked that China possesses two core strengths in AI development—its robust electric power infrastructure and advanced telecommunications networks.

These words, coming from the founder of Huawei, carry significant weight. As the world's foremost telecommunications equipment provider, Huawei is now integrating its technology deeply into the fabric of China's power grid, influencing both its peripheral and central operations. A private enterprise now controls the two critical elements Ren Zhengfei highlighted.

Over the past year, nearly all major state-owned energy companies—including State Grid, China Southern Power Grid, China Power Investment Corporation, Energy China, PetroChina, and China National Nuclear Corporation—have entered into agreements with Huawei. These collaborations span telecommunications equipment, AI computing power, cloud platforms, ERP systems, intelligent inspections, and grid dispatch.

This is more than just a commercial partnership. Huawei is evolving into the 'second brain' of China's energy system—complementing the primary brain, which consists of the machines in dispatch centers, with a comprehensive technological framework that supports their operations.

One District, One Terminal: Huawei is Transforming the Energy Landscape

What keeps the power system functioning? Communications.

Dispatch orders must be transmitted, and equipment status must be monitored—all dependent on a reliable communications network. Traditionally, SDH technology, with standards set by foreign entities, has been the backbone of power sector communications. However, in June 2026, State Grid Liaoning Electric Power, in collaboration with Huawei, unveiled the world's first end-to-end optical communication network pilot for the power sector. Huawei's fgOTN technology represents the next-generation evolution of SDH, making State Grid Liaoning the first provincial grid enterprise to successfully commercialize fgOTN and actively participate in setting international standards.

This marks a shift from mere equipment procurement to standard-setting.

On the distribution network front, automation and video surveillance previously required separate networks, leading to high costs and management challenges. Huawei's high-isolation PON technology, through chip-level resource isolation, enables a single network to handle both services, supporting extreme temperatures from -40°C to 70°C, 6,000-volt lightning protection, and 50-millisecond dual-link switching.

At substations, Huawei's all-optical intelligent substation solution achieves 'four nots'—no manual monitoring, inspections, meter reading, or analysis. Inspection task configuration efficiency has increased by 75%.

In August 2026, at EPICT 2026, Huawei introduced the Xinghe AI Power Network, covering four key scenarios: substation networks, IPv6+ power data networks, power SPN transmission networks, and intelligent computing wide-area networks. Leveraging 800GE ultra-broadband and network slicing deterministic carrying capabilities, this solution propels power communication networks from mere 'business pathways' to 'intelligent connectivity'.

Foresee Energy reported that Zhou Jianjun, Huawei's Vice President and President of the Global Marketing and Service System for Digital Energy, and Li Jiguang, General Manager of Huawei's China Government and Enterprise Power Business Department, attended the August 20 Huaneng talks. Their presence highlights the significance of the energy business within Huawei.

One Ascend Chip: From UHV to Converter Stations

Communications are just the beginning; Huawei's penetration at the computing power level is even more profound.

The Lingxiao UHV DC transmission project, stretching 1,720 kilometers from Ningxia to Zhejiang, is the most powerful among Zhejiang's three West-to-East power transmission channels. As of June 2026, it has transmitted over 435.7 billion kWh, with new energy accounting for 27%.

By the end of 2025, State Grid Zhejiang Electric Power and Huawei established a joint innovation laboratory, deploying Huawei's Ascend inference servers at the Shaoxing Converter Station, the receiving end of the Lingxiao project. The Ascend platform unified and scheduled the dispersed computing power of the original 20 systems, enabling 'air-space-ground' integrated intelligent inspections. An AI inspection team, comprising drones, wheeled inspection vehicles, and quadruped robotic dogs, covers over 95% of the station's inspection points. Inspection time has been reduced from two hours to 30 minutes, with efficiency nearly quadrupled and fault defect identification accuracy stabilized at 98%.

Huawei's chips are now at the helm of China's most critical UHV transmission hubs.

China Southern Power Grid is also on board. Guangzhou Power Supply's Metering Automation System 3.0, based on Huawei CloudStack, achieves full-link 1-minute collection of metering data for tens of millions of users, with a peak database entry performance of 4.57 million records per second—15 times faster than the industry average.

China Southern Power Grid and the Ascend team developed the power industry's first independently innovative large model. In July 2026, China Southern Power Grid's User Ecosystem Operation Company and Huawei jointly released the white paper for the 'Dawatt · Zhiyin' AI Capability Platform. The platform serves over 270 million users, handles 100,000 daily service requests, and achieves an 89% share of intelligent services in key scenarios.

The 'Yudian' intelligent simulation large model, assisted by Huawei, is now directly deployed at the forefront of grid dispatch.

The Ascend CANN open-source community welcomed its first power industry Special Interest Group, jointly initiated by Huawei, China Southern Power Grid, and South China University of Technology. Independently innovative AI foundational software is transitioning from general-purpose computing power to vertical industry applications.

From telecommunications to chips, from cloud platforms to large models, Huawei's technology is being seamlessly integrated into the nerve endings and central nervous system of China's power system.

A Long List of Joint Laboratories: Huawei is the Go-To Partner

Deeper transformations are underway in the collaboration model.

Previously, partnerships focused on equipment procurement and project execution. Now, the emphasis is on joint innovation laboratories, research and development institutions, and innovation centers.

State Grid Zhejiang Electric Power and Huawei established a joint innovation laboratory. Yalong River Hydropower Development Company and Huawei set up a joint innovation center. Eastern Geophysical Exploration and Huawei signed an agreement to jointly build an innovation consortium. China Power Investment's agreement explicitly mentioned the establishment of a 'joint research and development institution'.

This signifies a shift from a client-vendor relationship to a collaborative research and development partnership. Grid companies open up their business scenarios, while Huawei injects its technological capabilities, creating a deep integration that is irreversible.

The penetration of 'Power HarmonyOS' is another subtle yet significant trend. The agreement between Guizhou Power Grid and Huawei explicitly includes 'Power HarmonyOS innovative applications.' China Southern Power Grid's 'Nanwang Dianhong' IoT operating system, based on open-source HarmonyOS, has already commissioned the first zero-carbon intelligent distribution station in Guangxi.

Operating systems have become the gateway to Huawei's power ecosystem. When all terminal devices across the power system run on HarmonyOS, Huawei's influence becomes undeniable.

In November 2025, Huawei, in collaboration with China Huadian, China Power Investment, and seven other enterprises, launched the 'Computing-Power and Electricity Coordination & AI Cooperation Initiative' in Heilongjiang. Computing power relies on electricity, and electricity needs computing power for consumption and optimization.

Hou Jinlong, Huawei's Director and President of Digital Energy, stated at the 2026 Global AIDC Industry Forum: 'Ultimately, computing power depends on electricity; energy is the foundation for the long-term development of AI.' Huawei subsequently released its Source-Grid-Load-Storage AIDC Strategy, focusing on '3+1' reconstruction to create a comprehensive Source-Grid-Load-Storage AIDC solution.

From power generation and transmission to consumption, from telecommunications and computing power to operating systems, Huawei is constructing a closed-loop technology ecosystem that encompasses the entire energy supply chain.

A Race with No Rivals

Returning to Ren Zhengfei's statement: China holds two advantages in AI development—its electric power infrastructure and telecommunications networks.

Huawei possesses both of these 'cards.' As China's largest supplier of telecommunications network equipment, it is now comprehensively penetrating China's largest power system.

In 2025, Huawei's Digital Energy business achieved sales revenue of RMB 77.312 billion, a year-on-year increase of 12.7%. Huawei's power modules ranked first in the Chinese power module market, leading the second-place competitor by several percentage points. In 2025, the Chinese power module market reached RMB 2.72 billion, a year-on-year increase of 27.8%. Huawei's overall UPS market share ranked first for seven consecutive years, and its modular UPS market share ranked first for twelve consecutive years.

China's smart grid market is projected to exceed RMB 800 billion by 2025. Huawei's share and position within this market are growing at a pace that surpasses most expectations.

State-owned energy enterprises possess scenarios, data, and electricity. Huawei has chips, clouds, and AI platforms. This is a mutually beneficial relationship, fulfilling each other's needs. However, the depth of cooperation is evolving—from equipment procurement to joint research and development, from project collaboration to strategic binding, from supplier to 'partner'.

In May 2026, the National Energy Administration, in conjunction with the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the National Data Bureau, issued the 'Action Plan for Promoting Mutual Empowerment Between AI and Energy,' deploying 29 key tasks. The goal is to achieve significant results in the mutual empowerment of AI and energy by 2030. In the same month, the National Energy Administration released 51 high-value 'AI+' energy scenarios, and 25 energy enterprises signed an open-scenario initiative.

Policies are driving progress, enterprises are advancing, and technologies are being deployed. Energy AI is transitioning from conceptual verification to large-scale implementation.

Huawei faces virtually no competition in this domain. Internet companies lack the hardware, telecommunications expertise, and deep industry accumulation in the power sector. Traditional IT vendors lack AI, chips, and complete cloud platform capabilities. Huawei, however—with its self-developed and controllable telecommunications, chips, cloud, AI, and power electronics—has it all.

A private enterprise is becoming the provider of foundational technologies for China's energy system. This is not just a story—it is a reality unfolding before our eyes.