Beijing plans to spend 2 trillion yuan to build nationwide data centers, aiming to accelerate domestic AI development and reduce reliance on US tech.
China will invest approximately 2 trillion yuan ($295 billion) over the next five years to construct a network of data centers across the country. The initiative, led by key government agencies, aims to strengthen the domestic AI sector and challenge US dominance in critical technology.
The plan involves state-owned firms like China Mobile and China Telecom operating the data centers, with at least 80% of the technology sourced from local suppliers such as Huawei. This strategy mirrors past efforts to replace US technology with domestic alternatives, aligning with the broader “Six Networks” infrastructure program.
Shares of Chinese data center providers, including GDS Holdings, surged as much as 12% in pre-market US trading following the announcement.