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February 24, 2022

The impact of "East Data and West Calculation" on chemical industry

Following the three mega projects of West-to-East Gas Transmission, West-to-East Power Transmission and South-to-North Water Diversion, China's fourth cross-regional resource allocation mega-project, the "East-West Calculation" project, has recently been officially landed. The full launch of the project marks the "fast forward button" for the construction of digital China and network power. For the petroleum and chemical industry, "counting from east to west" will also promote the digitalization and high-quality development of the industry.

First, "counting from east to west" will provide a solid foundation for the digital transformation of chemical enterprises.

In the era of digital economy, chemical process simulation and simulation, molecular simulation design and other processes require a large number of complex calculations, and chemical enterprises have higher and higher demand for "cloud, data use, and intelligence", especially the demand for computing power. The promotion of the "East Data and West Computing" project will further improve and optimize computing power, help reduce the cost of enterprise cloud use, and accelerate the application and landing of new technologies such as industrial Internet and artificial intelligence, which will undoubtedly provide a more solid foundation for the innovation and development and digital transformation of chemical enterprises.

Second, "counting from east to west" will bring a "butterfly effect" to modern coal chemical industry.

At present, most of China's data centers are distributed in the east, and with the increasing shortage of land, energy and other resources in these areas, large-scale development is difficult to sustain. The western part of China has abundant resources and has the potential to develop data centers and undertake the demand for computing power in the east. This is also the background of China's "East Data and West Calculation" project.

It is precisely for this reason that from the lofty mountains of Guizhou to the vast grasslands of Inner Mongolia, the western region with abundant resources and low electricity costs has become a fertile ground for many IT enterprise data centers to take root. For example, Huawei, Kuaishou, Alibaba, Youkede and other enterprises have chosen to build data centers in Inner Mongolia. In short, data centers consume a lot of power and water, so building in the energy-rich and inexpensive West is a good idea.

Coincidentally, a considerable number of modern coal chemical projects in China are also built in the western region, and they also have the problem of large power and water consumption. Under the background of "dual carbon" and "dual control", energy conservation and emission reduction of coal chemical enterprises are on the line. With the advancement of "counting from east to west", it is foreseeable that the "cheap" electricity resources and already scarce water resources in the west will no longer be readily available, and the extensive development model will also be unsustainable. This will also force coal chemical enterprises to further transform and upgrade, eat up every resource, and make full use of every waste heat, so as to enhance the competitiveness of enterprises and products.
Third, "counting from east to west" will promote westernized enterprises to further reduce carbon emissions.

Data centers are big energy consumers and are known as "steel mills that don't smoke". Although enterprises have made efforts to coordinate the use of new energy electricity and recover waste heat from data centers, in the current context where thermal power generation is still dominant, the data center industry consumes a lot of electricity while also generating a lot of carbon emissions. Under the background of "dual carbon", the total amount of carbon emission control is in full swing in various places. The increase in carbon emissions from new data centers means a decrease in carbon emissions from other industries, such as chemicals. Under the "rise and fall", the pressure of carbon reduction in the entire western region is bound to increase day by day. This is not only an urgent spur for the chemical industry, a major carbon emitter, but also a practical incentive. Only by reducing carbon emissions through management optimization, equipment upgrading, technological transformation and process optimization, and energy cascade utilization can chemical enterprises in western China take the initiative to seek changes and turn challenges into opportunities.

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