Key facts
- China is building data centres in rural areas of Inner Mongolia, Ningxia, Gansu, and Guizhou.
- These data centres will fuel China's AI platforms and are considered critical for economic and national security.
- China aims to embed AI across 90% of industries by 2030.
- Young Chinese engineers and researchers are returning from the US due to perceived better resources and government support for AI.
- China is promoting open-source AI models as an alternative to the closed-model approaches used by US firms.
- The US has expressed concerns about China's AI advancements, with some calling for a ban on advanced chip sales to China.
In the expansive grasslands of Inner Mongolia, China is constructing a new skyline of data centres, transforming rural plains into hubs for artificial intelligence. These massive facilities, located in regions like Ulanqab, Ningxia, Gansu, and Guizhou, are crucial for powering China's AI ambitions and are viewed by the Chinese Communist Party as vital for economic and national security.
The construction is proceeding at a rapid pace, described by workers as "China speed." These data centres are intended to drive China's mission to embed AI across 90% of its industries and society by 2030. The country is also focusing on developing a strong talent pool, with young engineers and researchers increasingly choosing to stay in or return to China due to perceived greater opportunities and government support, partly influenced by US immigration restrictions and geopolitical tensions.
US President Donald Trump has highlighted the importance of AI, with AI firm Anthropic's CEO Dario Amodei advocating for continued restrictions on advanced chip sales to China. Conversely, China, through state-run media like the Global Times, has dismissed these concerns as a "Cold War playbook" aimed at containing its rise. President Xi Jinping is encouraging Chinese AI firms to develop affordable, open-source models, contrasting with the closed-model approaches of US companies like OpenAI and Anthropic. This open-source strategy has helped Chinese firms innovate rapidly and overcome challenges related to accessing advanced chips.
Beijing also seeks a significant role in shaping global AI governance and regulation. The current summit in Washington is seen as a critical juncture for discussions on AI safety and potential collaboration. In Ulanqab, the development of these data centres is also leveraging vast renewable energy capacity and cheaper land, though concerns remain about reliance on coal power in some areas and water supply in arid regions. Some local residents have expressed concerns about land acquisition and the limited direct benefits to their communities, with few jobs created for locals and fears of displacement.
Despite economic headwinds such as sluggish growth and rising youth unemployment, China's AI sector is bolstered by a large annual output of science and tech graduates. AI developers report an increasingly open research environment, fostering innovation across various scientific fields. However, some academics note that the system still prioritizes conformity over critical challenge.