China is preparing to spend around 2 trillion yuan ($295 billion) over the next five years on building data centers across the country, fueling Beijing’s ambition to propel the domestic AI sector and surpass the US in a potentially game-changing technology.
Key government agencies including the National Development and Reform Commission are drafting a blueprint to erect a network of inter-connected computing hubs across the country, people familiar with the matter said. State firms such as China Mobile Ltd. and China Telecom Corp. will operate the bulk of the data centers and ensure they’re connected, one of the people said. The idea is to rely on local suppliers including Huawei Technologies Co. for at least 80% of technology such as AI chips, effectively squeezing out Nvidia Corp. and Advanced Micro Devices Inc., the people said.