Chinese authorities are developing a massive plan to create a national network of interconnected computing hubs and data centers, with investments of about 2 trillion yuan ($295.4 billion) over the next five years. The funding will primarily come from sovereign bond issuance and state funds.

The state program, coordinated by the National Development and Reform Commission (NDRC), aims to gradually integrate fragmented regional computing capacities into a unified system by 2028. Key infrastructure operators will be state telecom giants China Mobile and China Telecom.

At least 80% of technological solutions, including specialized AI chips, must be supplied by domestic manufacturers, with Huawei Technologies playing a central role. This requirement effectively limits the presence of US companies Nvidia and AMD in China's state AI infrastructure.

Total funding could rise to $735.6 billion if fully integrated with energy system modernization. The announced state investment is lower than the combined $725 billion that private US corporations like Meta and Microsoft plan to spend on AI this year alone.

However, data center construction costs in China are lower due to cheaper components, labor, and provincial subsidies. The $295.4 billion budget does not include investment programs of private Chinese AI developers such as Alibaba and Tencent.

In May, nine types of Chinese-made processors from Huawei, Alibaba, Biren Technology, and Moore Threads passed official security audits for use in protected sectors. Shipments of US-approved Nvidia H200 chips to China have not yet begun, indicating Beijing's growing confidence in import substitution.

According to Forrester Research analysts, a centralized network will give commercial enterprises in finance, logistics, healthcare, and manufacturing access to more affordable and flexible computing resources. The project will also spur digital investment and talent flow into underdeveloped inland provinces.

Source: podrobno.uz