Abstract: As global energy structures transform and the demand for flexibility in power systems escalates, Compressed Air Energy Storage(CAES),a large-scale and long-duration energy storage technology, exhibits enormous potential for growth.Shaanxi Province, as a vital energy hub in Western China, boasts abundant underground spaces such as salt caverns, deserted coal mines, depleted oil and gas reservoirs, and limestone karsts, which provide ideal locations for constructing large-scale CAES facilities.These naturally or artificially formed subterranean spaces typically possess high levels of sealing integrity and stability, making them suitable for storing high-pressure air, thereby reducing the costs and environmental impacts associated with building new storage caverns.With advantageous conditions in resources, technology, policy support, and market demands, Shaanxi Province is well-positioned to undertake underground CAES projects.Its promising future development indicates that it could emerge as a paradigm for energy storage technology application, not just within China but also globally.