Catenaa, Tuesday, June 09, 2026- China is preparing to spend around $295 billion over the next five years on building data centers across the country.
Key government agencies, including the National Development and Reform Commission, are drafting a blueprint to erect a network of interconnected computing hubs across the country, Bloomberg News reported.
State firms such as China Mobile and China Telecom 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, for at least 80% of technology such as AI chips, effectively squeezing out Nvidia and Advanced Micro Devices, the report said.
The overarching plan represents Beijing’s most aggressive endeavor yet to lay the foundation for future Chinese AI development.
It recalls the undertakings of years past that marshalled resources to support national champions like Huawei to replace US technology.
And it’s a key prong of the “Six Networks” program announced earlier this year, covering construction of essential infrastructure spanning water and electricity to computing, Bloomberg News reported.
The data center blueprint remains in early discussions, and details could change, the report said. But it underscores Beijing’s resolve to drive cutting-edge technologies even as spending elsewhere begins to wither under mounting government debt.
The sum will be funded mainly through sovereign debt, including ultra-long-term special government bonds, typically of more than 10 years’ tenure, and state funds for investment in strategic industries. Bank loans and private capital would supplement the financing, the report said.
The idea of building a nationwide computing network was laid out in China’s latest five-year plan covering the period through 2030, in which Beijing pledged to prioritize the construction of data infrastructure.
The latest investment goal, which hasn’t previously been reported, pales in comparison to the $725 billion that US leaders such as Meta Platforms and Microsoft are setting aside for AI this year alone.
Chinese data centers in general cost less than in the US because of cheaper labor, component, and construction costs, and local government incentives.
The $295 billion also doesn’t include spending by private firms such as Alibaba Group Holding and Tencent Holdings, the report said.
It’s unclear how the envisioned unified data center network would function alongside those private hubs.
But the broad goal is to connect those scattered data facilities to a cohesive network by 2028. That in turn furthers China’s objective to push AI adoption across public sectors such as health care, transportation and city management.
In addition to AI facilities, which include data centers and faster communications infrastructure, China also plans to integrate the power grid with the project. That could take the total projected investment to at least $739 billion, the report said.
