China is experiencing a massive surge in demand for AI tokens, with projections indicating a tenfold increase in consumption by 2026. This explosive growth is driven by the shift in the artificial intelligence industry, moving from competition over large models and computing power to the large-scale deployment and monetization of intelligent agents.
Explosive Token Growth Predicted
According to a report titled Research Report on AI Infrastructure Development in the Intelligent Agent Era (2026), released by the China Telecom Research Institute, the nation’s token demand is set for an unprecedented expansion. Rao Shaoyang, Director of the Industry and Enterprise Strategy Research Institute at China Telecom Research Institute, stated that China’s annual token consumption is expected to reach 100 quintillion (10^20) in 2026. This figure is projected to surpass 350 quintillion by 2030, reflecting a compound annual growth rate of nearly 12 times.
Compute Power Demand Surges Alongside Intelligent Agents
The proliferation of intelligent agents is also fueling a sustained and rapid increase in China’s demand for computing power. Rao anticipates that within the next two to three years, the country’s compute power needs will grow by an average of nearly 10 times annually. The structure of this demand is also shifting significantly, with inference compute power set to far outstrip training compute power. By 2029, inference compute power is expected to capture 80% of the domestic market share.
Significant Investment in AI Infrastructure
The report highlights the substantial financial commitment being made by leading technology companies in China. AI capital expenditure by these major players is forecast to approach 600 billion yuan in 2026, accounting for over 10% of the total societal investment. This underscores the strategic importance placed on AI development and infrastructure build-out.
Global Context: Intelligent Agents on the Rise
These trends in China align with global projections for the growth of intelligent agents. International market research firms predict that the number of active intelligent agents worldwide will reach nearly 80 million by 2026. Looking ahead to 2030, this number is expected to soar to 2.216 billion, indicating a massive global expansion and adoption of AI-powered agents across various sectors.
The convergence of massive token demand, escalating compute power requirements, and the widespread deployment of intelligent agents signals a transformative period for China’s AI landscape and the global technology sector.
