China has invested more than $6.1 billion in developing data centers in the country in the past few years.
As reported by Reuters, the figure was disclosed by Liu Liehong, head of China's National Data Bureau.
Correct as of the end of June 2024, the investment was made as part of the Eastern Data, Western Computing initiative that commenced in 2022.
When the initiative was launched, the National Development and Reform Commission (NDRC) estimated that eight data center clusters could see $63 billion in investment every year.
China has been investing in its compute capacity in the face of export controls imposed by the US as part of a tech trade war between the two countries, which has seen Washington ban the sale of components including advanced chips to Chinese companies.
These restrictions are in place, according to the US government, to prevent China from using the chips for AI development and military programs, and to limit human rights abuses.
Devices banned under the export controls include Nvidia GPUs and chipmaking equipment from Dutch company ASML. Despite this, there have been several reports of Chinese institutions gaining access to advanced chips in recent months.
Outside of the $6.1bn invested by the Chinese government, the eight data center hubs have attracted more than $28 billion in private investment according to Liehong. Thus far, 1.95 million server racks have been deployed and around 63 percent are being used.
The data center hubs are located in the northern Inner Mongolia region, northwestern Ningxia region, Gansu province, southwestern Guizhou province, Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, and the Chengdu-Chongqing economic circle. On top of these 'national computing hubs,' ten smaller data center hubs could be planned.
In August 2024, reports emerged that Chinese export control on semiconductor materials - in retaliation to US chip sanctions - was leading to concerns about a chip shortage.
China has almost doubled the price of key materials, including gallium and germanium, in the last 12 months.
