World’s largest hydropower station in Tibet: China lays foundation for AI energy infrastructure development

On July 21, 2025, Chinese authorities announced the construction of the world’s largest hydropower station, costing $167 billion, on the Yarlung Tsangpo River in Tibet—a mega-dam project that will generate 300 billion kilowatt-hours annually, surpassing China’s current largest station, Three Gorges, and matching the UK’s annual electricity consumption.

The construction of this massive hydropower station in disputed Tibetan territories near the Indian border, valued at $167 billion, emerges as the world’s largest hydroengineering project with multifaceted political, technological, and geo-economic implications.

Approved in December 2023 and rapidly launched in July 2025, the project reflects China’s long-term strategy to transform Tibet’s water resources into a lever of structural pressure on India.