ENERGY – THE DECISIVE FACTOR IN THE AI COMPETITION

 

At the Davos 2026 Forum, it was emphasized that the key factor shaping the next stage of artificial intelligence development will be the price and accessibility of electricity. According to China’s leading media outlet (SCMP), China’s low cost and large scale energy supply has become a strategic advantage for the AI sector. In 2025 alone, the country added 445 GW of new power capacity, the highest in the world.

Elon Musk noted that while the production of AI chips is accelerating, a global shortage of electricity needed to operate them is emerging. Meanwhile, European policymakers have warned that high energy prices are weakening technological and industrial competitiveness.

Energy has become the new strategic resource of artificial intelligence, and countries that can secure affordable and reliable energy will clearly dominate the next wave of technological advancement.

In line with these global trends, UBIM, is making real investments to strengthen energy security and cost competitiveness in order to support Ulaanbaatar’s long term growth.

A clear example is the 300 billion MNT investment in the Booroljuut Power Plant in 2024, a strategic decision that supports the development of the capital city’s economy, industry, and future technology sectors.

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