China has invested over 43.5 billion yuan ($6.12 billion) into a nationwide computing data center project, according to Liu Liehong, head of the National Data Bureau, speaking at an industry conference in Guiyang. This investment, reported as of the end of June, is part of the “Eastern Data, Western Computing” initiative launched in early 2022, aimed at advancing China’s digital infrastructure and bolstering its computing capabilities amid ongoing tech export restrictions from the United States.
The project, which aligns with President Xi Jinping’s vision of a “digital China,” includes the development of eight major data center hubs primarily located in the western regions of the country. These hubs are designed to leverage the west’s abundant energy resources and transfer computing power to the more economically developed coastal areas.
In addition to government funding, the initiative has attracted over 200 billion yuan in private investments. As part of the project, over 1.95 million server racks have been installed, with approximately 63% currently in operation.
The initiative comes in response to US restrictions on exports of advanced computing products, including those from Nvidia, and aims to enhance China’s self-reliance in high-tech computing infrastructure.
($1 = 7.1122 Chinese yuan renminbi)
I’m a finance writer with three years of experience in investment analysis. At Investorwelcome , I translate complex financial concepts into clear, actionable insights to help investors navigate the market with confidence. Combining my solid academic background with practical industry knowledge, I’m dedicated to providing readers with accurate and timely information. My goal is to empower both new and seasoned investors by simplifying intricate data and offering strategic advice. When I’m not writing, I stay engaged with market trends and investment innovations to ensure my content remains relevant and valuable.
