China is drafting a 2 trillion yuan ($295 billion) plan to build a nationwide AI data center network over the next five years. The National Development and Reform Commission is leading the initiative to bolster the domestic AI industry and reduce reliance on Western technology.
State-owned operators China Mobile and China Telecom will manage the majority of these new facilities. The plan mandates that at least 80% of infrastructure, including AI chips, must come from local suppliers like Huawei.
This policy aims to displace foreign competitors including Nvidia and AMD from the Chinese market. Funding for the project will come primarily from sovereign debt and state investment funds.