CHINA PREPARING $295B PLAN TO FUND NATIONWIDE AI INFRASTRUCTURE PUSH: REPORT

Wed 10 June 2026:

Plan would rely heavily on state firms, domestic suppliers and sovereign-debt funding

China is preparing a roughly 2 trillion yuan ($295 billion) plan to finance a nationwide artificial intelligence infrastructure buildout over the next five years, as Beijing seeks to strengthen its domestic AI industry and reduce reliance on foreign technology, according to a Bloomberg report on Tuesday.

Key government agencies, including the National Development and Reform Commission, are drafting a blueprint to establish a network of interconnected computing hubs across the country, Bloomberg reported, citing people familiar with the matter.

There has been no official confirmation of the plan. China’s National Development and Reform Commission and Finance Ministry have not publicly announced such a program.

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Under the plan, state-owned firms such as China Mobile and China Telecom would operate most of the data centers and help connect them into a unified national computing network.

The project is expected to rely on domestic suppliers, including Huawei, for at least 80% of technology such as AI chips, in a move that could further limit the role of US chipmakers Nvidia and AMD in China’s AI infrastructure market.

The plan is still in early discussions and details may change, reports said.

Funding would come mainly from sovereign debt, including ultra-long-term special government bonds, as well as state investment funds focused on strategic industries.

Bank loans and private capital are also expected to support the financing.

The proposed investment forms part of China’s broader effort to build critical infrastructure for next-generation technologies, including computing, electricity and communications networks.

Beijing aims to connect scattered data facilities into a cohesive national network by 2028, giving companies broader access to high-performance computing and supporting AI use in sectors such as healthcare, transport and urban management.

The 2 trillion yuan figure does not include spending by private Chinese technology firms such as Alibaba and Tencent, which have also been investing heavily in AI.

China is also considering integrating the power grid with the AI infrastructure project, which could lift total projected investment to at least 5 trillion yuan ($738 billion), the report said.

-Source: AA

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