# Bloomberg: China Drafts a Five-Year, 2 Trillion Yuan ($295B) Nationwide AI Data Center Buildout — National Development and Reform Commission Blueprint Would Have China Mobile and China Telecom Operate Interconnected Compute Hubs and Source 80% of AI Chips From Huawei and Other Domestic Vendors, Squeezing Out Nvidia and AMD

> Beijing plans a $295B, five-year buildout to wire China's AI clusters together — and to do it without Nvidia.

- Org: Bloomberg
- Date: 2026-06-09
- Category: ecosystem
- Source: https://sherwood.news/markets/china-295-billion-ai-data-center-network-to-power-ai-buildout/
- Canonical page: https://ai-tldr.dev/releases/china-295b-ai-data-centers-jun9/

## In short

Bloomberg reports a 2 trillion yuan, five-year state plan to wire together a nationwide AI compute network using domestic chips. State telcos operate it; Huawei and local vendors supply 80% of the silicon.

## What it is

Bloomberg reports that China's National Development and Reform Commission is drafting a five-year, 2 trillion yuan ($295 billion) blueprint to connect the country's regional AI data centers into a single nationwide compute network. State telecom giants China Mobile and China Telecom would operate the bulk of the sites, with major hubs targeted in Inner Mongolia, Ningxia, and Gansu and a unified national system aimed at 2028.

## How it works

Funding leans on ultra-long-term central-government bonds and state investment funds, topped up with bank loans and private capital. The plan would require at least 80% of AI silicon and core infrastructure to come from domestic suppliers — Huawei first, alongside other Chinese chipmakers — effectively locking Nvidia and AMD out of the new buildout. It is described as a key prong of Beijing's earlier 'Six Networks' program, which spans water, power, transport, and compute infrastructure.

## Why it matters

China already runs about 1.59 million PFLOPS of compute across roughly 42 AI clusters, ranking second globally. A unified, domestic-chip-only blueprint at this scale codifies the decoupling that US export controls have been pushing toward and turns Huawei's Ascend roadmap into a national-scale procurement commitment. For Nvidia and AMD, it is the most explicit signal yet that the Chinese AI capex cycle is no longer addressable. For US hyperscalers, $295B over five years is small versus the ~$725B Meta and Microsoft alone are spending in 2026 — but the political message is the comparison.

## Who it's for

AI infra investors, semiconductor analysts, policymakers, and anyone modelling China's AI compute trajectory

## Links

- [Bloomberg Report](https://www.bloomberg.com/news/articles/2026-06-09/china-prepares-295-billion-plan-to-fund-nationwide-ai-buildout)
- [Sherwood News](https://sherwood.news/markets/china-295-billion-ai-data-center-network-to-power-ai-buildout/)
- [The Next Web](https://thenextweb.com/news/china-295-billion-ai-data-centre-plan)
- [Yahoo Finance Summary](https://finance.yahoo.com/sectors/technology/articles/china-prepares-295-billion-plan-092350515.html)