China links AI and computing to boost trillions in GDP

High-density server rack with glowing fiber-optic junctions in a large data center, teal and amber lighting

China is accelerating its artificial intelligence ambitions through a national computing push that officials say could add trillions of yuan to the economy by 2035, aligning regional resources to meet surging AI demand.

National network signs up AI models and users

At the China Computing Power Conference in Datong, Shanxi province, authorities said a unified platform now connects 10 provinces and municipalities, spanning from Shanghai and Zhejiang to Qinghai and Xinjiang, to better match business demand with underused computing resources across regions.

State broadcaster CCTV reported that the platform has already enrolled more than 100 service providers, 1,000 industry users and nearly 100 AI models. According to the South China Morning Post, the initiative comes amid intensified efforts to expand data centres and chip capacity.

Projected growth in smart computing power

China’s smart computing power is projected to grow by 43 per cent this year, according to an AI-computing-power assessment report published earlier this year by the International Data Corporation and Inspur Information. From 2023 to 2028, the report estimates smart computing power will increase at a compound annual rate of 46.2 per cent, compared with 18.8 per cent for general-purpose computing power.

Economic stakes and self-reliance drive

Rao Shaoyang of the China Telecom Research Institute said AI could contribute more than 11 trillion yuan to China’s gross domestic product by 2035. The national agenda positions AI as a critical battleground, with Beijing backing a networked approach to allocate computing capacity where it is most needed.

Over the past five years, China has invested heavily to expand computing power, with overall capacity growing about 30 per cent annually. The country has been pouring money into data centres and chips as part of a broader self-reliance push, aiming to support the rapid deployment of AI services and industrial applications.

According to SCMP, officials highlighted that more than 100 AI models have already been integrated into the national platform, indicating momentum in aligning infrastructure with practical use cases across industries.

With provinces and municipalities linked through the unified network, the initiative seeks to optimise capacity utilisation, reduce bottlenecks and accelerate AI adoption in sectors that can benefit from increased computing resources.

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