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China drafts $295 billion plan to build national AI data center grid running on 80% homemade silicon — projected 2028 timeline could run into limits of local chip production

Latest from Tom's Hardware ·Luke James·3 months ago
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China is drafting a plan to spend roughly 2 trillion yuan ($295 billion) over five years on a nationwide web of AI data centers. The goal is for at least 80% of the underlying technology, AI chips included, to be sourced from domestic suppliers such as Huawei, according to a Bloomberg report citing people familiar with the discussions. The National Development and Reform Commission is responsible for the blueprint of this network, while state carriers China Mobile and China Telecom will operate most of the facilities and link them up to a single computing grid by 2028. The build-out of this grid leans heavily on sovereign debt and ultra-long special government bonds. Folding in power grid upgrades could push the total capital requirement beyond 5 trillion yuan, those sources told Bloomberg. Funding the build-out is easy, though; filling them with domestic accelerators is a different story.…

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