China’s $295 Billion Ambitious Plan for Nationwide AI Data Centers
China is gearing up for one of the most significant state-backed technology investments in history. A 2 trillion yuan ($295 billion) plan is in the works to construct a nationwide network of AI data centers over the next five years. This news was first reported by Bloomberg on June 9, 2026.
Key government bodies, including the National Development and Reform Commission (NDRC), are in the process of creating a blueprint for interconnected computing hubs across the nation. It is expected that state-owned telecom giants, China Mobile and China Telecom, will operate the majority of this infrastructure. A crucial aspect of the plan is that at least 80% of all hardware — including AI chips — must be sourced from domestic suppliers like Huawei, effectively excluding U.S. chipmakers Nvidia and AMD.
This initiative is a component of Beijing’s more extensive “Six Networks” infrastructure program. The goal is to establish a unified national computing environment by 2028. If power grid upgrades are factored in, the total expenditure could surge to over 5 trillion yuan. The primary sources of funding will be ultra-long-term government bonds and state investment funds.
The announcement has caused a surge in the shares of Chinese data center providers. GDS Holdings saw a 12% increase in pre-market U.S. trading, while Vnet Group experienced a 17% climb. This development indicates a significant escalation in the global AI infrastructure competition, with U.S. tech giants Meta and Microsoft already projecting approximately $725 billion in AI expenditure for 2026 alone.
Source: Bloomberg — China Plans $295 Billion Investment to Build Nationwide AI Data Centers