China's data center industry is entering a new era of expansion driven by artificial intelligence (AI), cloud computing, sovereign computing infrastructure, and national digital transformation initiatives.
According to China's National Development and Reform Commission (NDRC), the country plans to invest approximately 2 trillion yuan (USD 295 billion) between 2026 and 2030 to build a nationwide AI computing network. China's installed data center capacity has already reached approximately 40 GW, making it one of the world's largest and fastest-growing digital infrastructure markets.
The latest largest data center projects in China include ByteDance's AI data center expansion, Alibaba Cloud's AI infrastructure initiatives, Jinko Power's 1 GW green data center campus, China Telecom's Lin-gang Information Park expansion, and the NDRC's National AI Data Center Network. Together, these projects represent billions of dollars in investment and demonstrate China's commitment to becoming a global leader in AI infrastructure and cloud computing.
**Why China's Data Center Market Is Growing Rapidly
**Several factors are driving unprecedented growth in the Chinese data center market:
• Rapid adoption of artificial intelligence applications
• Expansion of hyperscale cloud computing services
• Growth of domestic AI ecosystems
• Increasing demand for high-performance computing (HPC)
• Development of sovereign AI infrastructure
• National "Eastern Data, Western Computing" strategy
• Large-scale investments in renewable-powered data centers
China's digital infrastructure strategy aims to distribute computing resources more efficiently while supporting AI innovation, cloud services, and enterprise digital transformation.
**1. ByteDance AI Data Center Campus (Datong)
**Developer
ByteDance / Volcano Cloud
Location
Datong, Shanxi Province, China
Investment
4.5 billion Yuan (Approximately USD 614 Million)
Status
Under Construction
ByteDance is developing one of China's largest AI-focused data center campuses through the Volcano Cloud Taihang Computing Center II project. The facility is designed to support large language models, AI training, AI inference, cloud services, recommendation engines, and advanced data processing workloads.
**Key Infrastructure Details
**Category Details
Campus Size 205,013 sq. m
Server Capacity 15,604 Server Cabinets
Network Capacity 510 Network Cabinets
Primary Purpose AI Computing & Cloud Infrastructure
Construction Start May 2023
The project forms part of ByteDance's broader AI expansion strategy across Northern China and supports the growing demand for its Doubao AI platform and cloud services. The facility is located within the Guangling County Economic Development Zone Big Data Park.
Why It Matters
• Supports AI model training and inference
• Expands China's domestic AI computing capacity
• Strengthens ByteDance's cloud infrastructure ecosystem
• Supports high-density computing deployments
**2. Alibaba Cloud AI Infrastructure Expansion
**Developer
Alibaba Cloud
Key Locations
• Hangzhou
• Nantong
• Heyuan
• Ulanqab
• Shaoguan
Alibaba Cloud is undertaking one of the largest cloud infrastructure expansion programs in China. The company has announced a three-year AI and cloud infrastructure investment program worth approximately CNY 380 billion (USD 52 billion), with significant investments in AI computing clusters, cloud campuses, and domestic AI chip technologies.
Shaoguan AI Computing Center
A flagship component of Alibaba's expansion is the Shaoguan AI Computing Center, developed in partnership with China Telecom.
Key Highlights
Category Details
AI Cluster Size 10,000 AI Accelerator Cards
Chip Technology Zhenwu AI Chips
Future Expansion 100,000 AI Chips
Industry Applications Healthcare, Manufacturing, Enterprise AI
Network Architecture 4-Microsecond Interconnect
The facility relies entirely on domestically developed AI chips and represents a major milestone in China's sovereign AI computing strategy.
Strategic Importance
• Supports China's domestic semiconductor ecosystem
• Expands hyperscale cloud infrastructure
• Enables large-scale AI training workloads
• Supports enterprise AI adoption
Jinko Power Zhongwei Green Data Center
Developer
Jinko Power
Location
Zhongwei, Ningxia, China
Investment
CNY 24.5 Billion (USD 3.4–3.6 billion)
Capacity
1 GW
Status
Framework Agreement Signed / Planned
The Jinko Power Zhongwei Green Data Center is among the largest planned AI data center developments in Asia. The project combines hyperscale computing infrastructure with renewable energy generation and aligns with China's "Eastern Data, Western Computing" initiative.
Infrastructure Details
Category Details
Campus Size 534,000 sq. m
IT Capacity 1 GW
Rack Capacity 50,000 Racks
Development Phases Three
Target Completion 2028
Phase Breakdown
• Phase 1: 400 MW
• Phase 2: 300 MW
• Phase 3: 300 MW
The project leverages Ningxia's renewable energy resources and favorable climate conditions to support sustainable AI infrastructure development.
Key Benefits
• Renewable-powered data center infrastructure
• Supports AI training and HPC workloads
• One of Asia's largest planned data center campuses
• Aligns with China's carbon reduction objectivesChina Telecom Lin-gang Information Park Phase II
Developer
China Telecom
Location
Lin-gang Special Area, Shanghai
Investment
CNY 25 Billion (USD 3.57 Billion)
Capacity
290 MW
Status
Under Construction
China Telecom is expanding its Lin-gang Information Park to create a next-generation cloud, AI, and big data hub. Construction officially began in December 2025 and the facility is expected to become one of China's most important digital infrastructure assets.
Infrastructure Details
Category Details
Campus Size 350,000 sq. m
IT Capacity 290 MW
Initial Development 49,000 sq. m
Primary Uses AI, Cloud Computing, Big Data
Construction Start December 2025
Major Components
• Tianyi Cloud Core Nodes
• National Big Data Center
• International Communications Gateway
• AI Computing Infrastructure
• Cross-Border Digital Services Platform
The project benefits from Lin-gang's favorable cross-border data policies and is expected to attract cloud providers, AI companies, and international digital service providers.National AI Data Center Network
Lead Organizations
• National Development and Reform Commission (NDRC)
• China Mobile
• China Telecom
• China Unicom
Location
Nationwide
Status
Planning Stage
The National AI Data Center Network is arguably China's most ambitious digital infrastructure initiative. The project aims to connect major computing hubs across eight regional nodes under the Eastern Data, Western Computing framework.
Objectives
• Create a nationwide AI computing network
• Support sovereign AI infrastructure
• Improve utilization of regional computing resources
• Accelerate AI adoption across industries
• Reduce dependence on foreign computing technologies
The initiative will play a central role in China's long-term strategy to become a global leader in AI and advanced computing.
Major Data Center Companies in the Chinese Market
Here are the largest data center companies in China and their major announcements:
4.1. China Mobile, China Telecom, and China Unicom
• China's three state-owned telecom operators form the backbone of the country's AI and cloud infrastructure.
• Collectively operate more than 1.5 GW of colocation capacity.
• Leading the national AI data center network under the NDRC's strategy.
• China Telecom plans to allocate about 35% of its 2026 CAPEX (CNY 73 billion) to AI data center infrastructure.
• China Mobile opened its 6.7 EFLOPS intelligent computing center in Hohhot and is expanding with additional facilities in Harbin and Guiyang.
4.2. Alibaba Cloud
• Announced a three-year AI and cloud infrastructure investment program worth CNY 380 billion (about USD 52 billion), which could reportedly rise to USD 69 billion.
• Expanding major cloud campuses across Hangzhou, Nantong, Heyuan, Ulanqab, and Shaoguan.
• Developed the Zhenwu 810E AI chip as part of its domestic semiconductor strategy.
• Supplied over 23,000 Chinese-made GPUs to China Unicom's Xining data center.
4.3. ByteDance / Volcano Cloud
• One of the fastest-growing AI infrastructure investors in China.
• Targeting more than 1.2 GW of AI data center capacity in 2026.
• Developing large campuses in Shanxi and Inner Mongolia.
• The Datong Volcano Cloud Taihang Computing Centre II project represents a CNY 4.5 billion (USD 614 million) investment.
4.4. Tencent Cloud
• Plans to double AI investment in 2026 to around CNY 36 billion.
• Upgrading data centers with liquid cooling systems capable of supporting racks exceeding 50 kW.
• Expanding GPU capacity across its cloud and AI infrastructure network.
• Building large AI computing clusters in Shanghai and other Yangtze River Delta locations.
4.5. Huawei Technologies
• Emerging as China's leading domestic AI infrastructure supplier.
• Offers CloudMatrix 384 architecture, delivering 300 petaflops in a single supernode.
• Provides modular liquid-cooled data center solutions for high-density AI workloads.
• Expanding its role through the Ascend AI ecosystem and domestic computing platforms.
4.6. GDS Holdings (DayOne)
• One of China's largest carrier-neutral data center operators.
• Raised USD 300 million in 2025 to fund high-performance AI facilities.
• Expanding campuses in Tianjin and Shaoguan.
• Pioneer behind China's first data center C-REIT structure.
4.7. VNET Group (21Vianet)
• Operates nearly 783 MW of wholesale data center capacity.
• Focused on hyperscale and AI customers.
• Continues to expand across major cloud and edge markets in China.
4.8. ChinData Group
• Acquired by Bain Capital and operates the Taihang Mountain Base in Shanxi.
• The campus is planned to exceed 500 MW, making it one of Asia's largest single data center parks.
• Expanding computing hubs across Inner Mongolia and central China.
4.9. Jinko Power
• Entered the data center sector in 2026.
• Developing a 1 GW green data center campus in Zhongwei, Ningxia.
• Combining renewable energy generation with AI infrastructure under China's "Eastern Data, Western Computing" strategy.
• Investing approximately CNY 24.5 billion (USD 3.4 billion).
4.10. HiCloud Technology
• Operates the world's first commercial offshore underwater data center near Shanghai.
• The 24 MW facility runs entirely on offshore wind power and achieves a PUE below 1.15.
• Planning a next-generation 500 MW underwater data center platform.
• Represents one of China's most innovative approaches to sustainable computing infrastructure.
Conclusion
China's data center industry is experiencing unprecedented growth driven by AI adoption, cloud computing expansion, and national digital infrastructure strategies. Projects such as the ByteDance AI Data Center Campus, Alibaba Cloud's AI infrastructure expansion, Jinko Power's 1 GW Green Data Center, China Telecom's Lin-gang Information Park, and the National AI Data Center Network demonstrate the scale of investment flowing into the sector.
With billions of dollars being invested in hyperscale data centers, AI computing infrastructure, renewable-powered facilities, and sovereign computing networks, China is positioning itself as one of the world's most influential digital infrastructure markets. Companies seeking opportunities in the China data center market, AI infrastructure, hyperscale data centers, cloud computing, and high-performance computing (HPC) sectors will continue to closely monitor these developments over the coming years.
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