China plans fourfold expansion of AI computing capacity by 2030, building data centers in remote cities

Sep 8, 2026

China plans to expand its intelligent computing capacity to 9,800 eflops by 2030, representing a fourfold increase from June 2026. Under a five-year plan released by the Ministry of Industry and Information Technology on September 7, 2026, Beijing calls for 3.8 trillion yuan in infrastructure investment. The expansion leverages the 'East Data, West Computing' project, shifting workloads to remote areas like Ulanqab, Inner Mongolia, while prioritizing adaptation to home-grown chips.

China AI computing capacity targets

▪China's intelligent computing capacity rose to approximately 2,450 eflops by the end of July 2026, according to the National Data Administration.
▪China's Ministry of Industry and Information Technology set a target of 9,800 eflops of intelligent computing capacity by 2030 in a five-year industry plan released on September 7, 2026.
▪China's intelligent computing capacity reached 2,185 eflops by the end of June 2026, representing a 177 percent increase from the previous year.

East Data West Computing project

▪Under the 'East Data, West Computing' project, China has established a network centered on eight national computing hubs, 10 data-center clusters, and three regions coordinating computing facilities with power supplies.
▪China's 'East Data, West Computing' project, launched in 2022, aims to shift power-intensive computing workloads from densely populated eastern regions to western areas with cheaper land and abundant energy.

Ulanqab data center construction

▪The city of Ulanqab in Inner Mongolia, with a population of less than 2 million people, has become a hub for China's efforts to relocate computing power to western regions.
▪Alibaba Group Holding Ltd. operates a data center in Ulanqab, Inner Mongolia, where construction of data-center sites is actively underway as of September 2026.

Infrastructure investment plans

▪China's Ministry of Industry and Information Technology called for 3.8 trillion yuan (US$532 billion) in cumulative information infrastructure investment over the 2026-2030 period.
▪By the end of June 2026, China had built 52 intelligent computing facilities equipped with more than 10,000 accelerator cards, according to the Ministry of Industry and Information Technology.
▪China's five-year industry plan released on September 7, 2026, calls for the orderly deployment of intelligent computing clusters with 10,000 graphics processing cards or those using 100,000 or more cards.

Domestic chip adaptation efforts

▪China's five-year industry plan released on September 7, 2026, calls for inference computing facilities tailored to different applications alongside large intelligent computing clusters.
▪China's five-year industry plan released on September 7, 2026, calls for greater efforts to adapt information infrastructure to home-grown computing chips.

Debatable claims

▪China's "East Data, West Computing" project is a viable model for AI development
▪China's massive state-directed AI infrastructure investment will lead to overcapacity
▪China should prioritize home-grown chips in its national AI infrastructure