China Plans 39 Data Centers Housing 115,000 NVIDIA AI Chips

China is set to establish a network of approximately 39 massive data centers, expected to house over 115,000 NVIDIA AI chips, including the restricted H100 and H200 Hopper models. Despite ongoing US export bans aimed at limiting China’s access to advanced artificial intelligence technologies, this ambitious project underscores Beijing’s determination to advance its AI capabilities.

The data centers will be strategically located in western provinces, particularly Xinjiang and Qinghai. A significant portion of the processing power, around 70% or approximately 80,500 GPUs, will be concentrated in a single state-owned facility near Yiwu in Xinjiang Province. These locations are selected for their abundant natural resources, including wind and solar energy, as well as cooler climates that are conducive to managing large-scale computing infrastructure.

Multiple prominent Chinese AI firms are involved in this initiative, which is reportedly receiving substantial support from the Chinese government. The scale of the project is noteworthy, with the planned number of GPUs potentially rivaling or exceeding the compute capacity of some of the world’s most advanced AI models.

Acquisition Strategies Amid Trade Restrictions

Given the US trade restrictions designed to prevent direct sales of advanced chips, questions arise regarding how China intends to acquire such a vast quantity of NVIDIA products. Although specifics are limited, experts speculate that procurement might occur through third-party suppliers or possibly even via black market channels. Nonetheless, US officials have expressed skepticism about the practicality of sourcing chips on this scale through an unregulated network.

Despite the challenges posed by these restrictions, China’s commitment to moving forward with this extensive infrastructure project signifies a strong expectation of securing the necessary components. This also reflects China’s broader efforts to enhance its domestic AI chip manufacturing capabilities.

The advances in China’s AI sector have raised concerns among US officials, who view the country’s progress in artificial intelligence as a potential threat to national security. As the situation continues to evolve, it remains to be seen how the US government will respond to China’s ambitious plans and whether new measures will be implemented to address these ongoing developments.