Pro China wants to spend nearly $300 billion on a national data center grid — all powered by domestically made silicon and looking to outperform the US News By Efosa Udinmwen published 17 June 2026 China wants full AI data center dominance with a $295 billion plan When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works . (Image credit: SCMP) Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter China plans a massive AI computing grid backed by domestic chips High-bandwidth memory shortages restrict advanced AI accelerator production in China Domestic chipmakers still lag behind global leaders by several years China is drafting a plan which could direct roughly 2 trillion yuan (about $295 billion) toward a nationwide AI computing network. The proposal would connect data centers across the country into a unified computing grid operated largely by state-backed telecommunications companies. Officials reportedly want at least 80% of the underlying technology, including AI chips and related infrastructure, to come from Chinese suppliers. Latest Videos From Watch full video here: A massive buildout centered on local technology The blueprint is being developed by the National Development and Reform Commission, while major carriers including China Mobile and China Telecom would oversee the operation. According to reports, the network would be linked into a single national computing platform by 2028 through extensive infrastructure deployment. You may like China buys an army of civilian robots as America’s electricity grid creaks Report claims power demands may halt AI data center advances soon Nvidia CEO Jensen Huang warns of “enormous” China compute capacity Financing would rely heavily on sovereign borrowing and ultra-long government bonds, while associated power grid upgrades could increase costs substantially. The total capital requirement could rise beyond 5 trillion yuan (about $738 billion) when energy infrastructure is included in broader estimates tied to the rollout. Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners or sponsors By submitting your information you agree to the Terms & Conditions and Privacy Policy and are aged 16 or over. The plan arrives as Beijing continues tightening restrictions on foreign semiconductor products used in data centers and AI facilities. In 2025, authorities introduced requirements that data centers obtain at least 50% of their chips from domestic manufacturers – and by November that year, state-funded projects reportedly faced additional restrictions that excluded foreign accelerators from facilities still under construction. Officials also pushed compliance measures that required the removal of Nvidia , AMD , and Intel components in projects below 30% completion. What to read next China refuses to buy Nvidia’s AI chips after Trump’s tariff plan backfires China unveils ‘world’s first’ underwater data center Antimatter plans global AI network with 1,000 micro data centers by 2030 Those measures have increased opportunities for Chinese chip companies, including Huawei, while reducing dependence on suppliers such as Nvidia, AMD, and Intel. The policy ensures that critical AI tools and LLMs operate on hardware developed within China, but replacing imported processors remains a difficult task. Domestic chip supply remains a major challenge Chinese semiconductor manufacturing capabilities mostly come from SMIC and a small group of state-approved foundries. SMIC co-chief executive Zhao Haijun has warned that excessive infrastructure expansion could leave facilities underused. Rep
Sumber: TechRadar