AI data centre projects in China have drawn over $100 billion in state funding since 2021
The Chinese government has ordered that new state-funded data centre projects use only domestically made artificial intelligence (AI) chips, according to REUTERS reporting. The directive affects facilities less than 30% complete, requiring them to remove or cancel plans for foreign chip installations, while more advanced projects will be reviewed individually.
The move is seen as one of Beijing’s strongest efforts yet to eliminate foreign technology from its critical infrastructure and advance its goal of AI chip self-sufficiency. U.S. firms like Nvidia, AMD, and Intel are expected to be hit hardest by the ban, with Nvidia described as “the biggest casualty.”
AI data centre projects in China have attracted over $100 billion in state funding since 2021, and most have received some level of government support. Some projects have already been suspended, including one in a northwestern province that had planned to use Nvidia chips.
The policy strengthens China’s domestic players such as Huawei, Cambricon, MetaX, Moore Threads, and Enflame, even as it risks widening the technology gap with the U.S., where companies like Microsoft and OpenAI continue to invest heavily in Nvidia-powered data centres.