China has invested over 43.5 billion yuan ($6.12 billion) in a nationwide project to construct computing data centers, a senior government official revealed on Thursday. This announcement comes amid escalating tech export restrictions imposed by the United States. Liu Liehong, head of China’s National Data Bureau, shared the investment figure, which reflects spending up to the end of June, at an industry conference held in Guiyang, as reported by state news agency Xinhua.
The project, known as “Eastern Data, Western Computing,” was officially launched in early 2022. It is part of President Xi Jinping’s broader initiative to develop a “digital China.” This substantial investment is seen as a strategic response to increasing U.S. restrictions on exporting advanced computing products to China, including those from prominent industry players like Nvidia. As a result, China is intensifying efforts to enhance its own advanced computing capabilities.
The “Eastern Data, Western Computing” initiative involves plans to establish eight major data center hubs, primarily situated in China’s western regions. This strategic location choice aims to leverage the abundant energy resources in the west and channel computing power to the economically vital coastal areas. Beyond direct government funding, the Chinese government is also actively encouraging private investment to support these developments.
Liu further noted that the eight data center hubs have already attracted more than 200 billion yuan in total investments. The project has so far installed over 1.95 million server racks, with approximately 63% of these currently operational.
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