China announced a plan to invest approximately 2 trillion yuan (about US$295 billion) over the next five years to develop a nationwide AI infrastructure network of interconnected data centers [1, 2, 3, 4, 5]. The goal is to create a unified national computing network and tightly integrated computing hubs by 2028, accelerating AI adoption in sectors such as healthcare, transportation, and urban management [2, 3].
Key government agencies, including the National Development and Reform Commission (NDRC), are drafting a blueprint to coordinate this effort. State-owned companies like China Mobile and China Telecom will operate most of the data centers and manage their interconnectivity [1, 2, 3, 4, 5]. By relying on domestic suppliers such as Huawei for at least 80% of key technologies including AI chips, the plan aims to reduce dependence on US firms Nvidia and AMD [1, 2, 3, 4, 5].
Funding will mainly come from sovereign debt instruments, including ultra-long-term special government bonds and state strategic investment funds. This will be supplemented by bank loans and private capital [1, 2, 3, 4, 5]. The AI infrastructure investment is part of the broader “Six Networks” program unveiled in March, which targets critical infrastructure development in areas like water, electricity, communications, logistics and urban underground pipes with a planned total budget of about 7 trillion yuan [1, 2].
China is also considering integrating new power grids with the AI infrastructure buildout, which could increase the total investment for the combined initiative to at least 5 trillion yuan [2, 3]. Private technology giants such as Alibaba and Tencent are not part of the 2 trillion yuan government-led AI investment but continue making their own AI advancements separately [2, 3].
Charlie Dai, Principal Analyst at Forrester Research, said, "Elevating it to a national strategy ensures policy alignment, capital mobilisation," emphasizing the government’s intent to coordinate large-scale deployment [1].
The plan aims to complete the integrated national AI computing network by 2028, marking a major milestone in China’s push to bolster domestic AI capabilities and infrastructure nationwide [2, 3].
