China plans to invest 2 trillion yuan to build a nationwide AI data center network.

CoinFeed reported on June 9th, citing Bloomberg, that China plans to invest approximately 2 trillion yuan (about $295 billion) over the next five years. Led by the National Development and Reform Commission and other departments, the plan aims to build an interconnected data center network nationwide and promote domestic AI computing infrastructure. State-owned enterprises such as China Mobile and China Telecom will operate most of the data centers, and the goal is to use domestic suppliers like Huawei for over 80% of related technologies (including AI chips), thus squeezing the market share of foreign manufacturers like Nvidia and AMD. Sources familiar with the matter said that the funds will primarily be financed through sovereign debt, including ultra-long-term government bonds with maturities typically exceeding 10 years, and national strategic industry investment funds. They also indicated that bank loans and private capital will serve as supplementary funding. The sources further revealed that this 2 trillion yuan investment target does not include expenditures by private enterprises such as Alibaba Group and Tencent Holdings Limited.