- China has invested over $6.1 billion in building eight major computing hubs, enhancing data capabilities in inland regions.
- The “east data, west computing” project aims to establish a comprehensive computing infrastructure by 2025, with 1.95 million data centre racks already in place.
OUR TAKE
China’s $6.1 billion investment in computing hubs aims to enhance its digital infrastructure and assert global tech leadership. By building in western regions, China aims to bridge economic gaps, strengthen data control, and challenge traditional tech leaders, solidifying its position as a global technology powerhouse.
–Jasmine Zhang, BTW reporter
What happened
By the end of June 2024, China had invested over $6.1 billion in the development of eight major computing hubs as part of its “east data, west computing” initiative. This mega project aims to enhance data storage and processing capabilities in the inland regions of China, balancing the computing power demands from economically advanced eastern areas.
Total investment driven by these hubs has exceeded 200 billion yuan, with over 1.95 million data centre racks in place. The initiative, launched in 2022, also plans to establish 10 national data centre clusters. Network latency between the hubs meets the 20-millisecond requirement, and Power Usage Effectiveness has improved to 1.04.
The project aims to have a comprehensive computing infrastructure system by the end of 2025. The ongoing China International Big Data Industry Expo 2024 in Guiyang highlights the project’s progress and attracts global industry leaders.
Also read: China’s big tech boosts AI spending amid US limits
Also read: China revises law on state secrets for data security and restrictions
Why it’s important
China’s $6.1 billion investment in computing hubs is a bold statement of its ambitions to become a global tech leader. By building these hubs in less developed western regions, China not only addresses internal economic disparities but also enhances its strategic control over data. This is significant in a world where data is the new oil—powering everything from AI to smart cities.
For China, this is about asserting its influence on the global stage. As the world becomes increasingly digital, China’s advanced data capabilities will solidify its position as a tech powerhouse, challenging traditional leaders like the United States.
This investment also reflects China’s broader goals of technological self-sufficiency and reducing reliance on foreign tech. As China ramps up its digital capabilities, it is reshaping the future of global tech leadership.
