China is drafting an early-stage plan to spend about 2 trillion yuan (US$295 billion) on AI infrastructure over five years, according to people familiar with the matter.

The proposal includes a nationwide network of connected data centers.

The blueprint is being prepared by agencies including the National Development and Reform Commission. Funding would come primarily from government-backed sources, with additional support from banks and private investors.

State-owned telecom operators China Mobile and China Telecom would run most of the data centers and connect them.

The plan would rely on domestic suppliers for at least 80% of key technology, including AI chips, which could benefit Chinese companies such as Huawei.

The proposal remains under discussion and could change. Its broader aim is to link scattered regional computing resources into a unified network by 2028.

The plan would also expand access to high-performance computing for businesses.

Integrating the power grid into the project could lift total investment to at least 5 trillion yuan (US$738 billion).

🔗 Source: Bloomberg