China has significantly accelerated its investment in data centers, pouring over 43.5 billion yuan ($6.12 billion) into a nationwide project in recent years. This initiative, known as “Eastern Data, Western Computing,” comes as the country faces growing technological restrictions from the United States.
According to state news agency Xinhua, Liu Liehong, head of China’s National Data Bureau, announced the investment figure at an industry conference in Guiyang. The investment, which is current as of the end of June, is part of President Xi Jinping’s broader vision to create a “digital China.”
The United States has imposed export controls on certain advanced computing products, including those from Nvidia, a leading chipmaker. These restrictions have prompted China to intensify its efforts to develop domestic capabilities in high-performance computing.
The “Eastern Data, Western Computing” project involves the construction of eight major data center hubs, primarily located in China’s western regions. The strategy aims to leverage the abundant energy resources available in the west and transfer computing power to coastal economic centers.
Beyond government funding, Beijing has actively sought private investment for the data center hubs. These hubs have attracted over 200 billion yuan in total investment, according to Liu.
The project has already installed over 1.95 million server racks, with approximately 63% of them currently in operation.
