$295 billion plan to build a nationwide AI data center

China is preparing a 2 trillion yuan ($295 billion) investment program to build a nationwide network of interconnected AI data centers over the next five years. The initiative aims to strengthen the country's AI capabilities while reducing reliance on U.S. technology and semiconductor suppliers. The network is expected to be operated by state-owned telecom companies, including China Mobile and China Telecom, with at least 80% of the infrastructure supplied by domestic firms such as Huawei. The project builds on existing national computing initiatives and reflects Beijing's strategy of achieving greater technological self-sufficiency amid ongoing U.S.-China competition. By combining state-backed funding, domestic AI chips, and a nationwide computing network, China aims to create a resilient AI ecosystem capable of supporting advanced AI models, cloud services, robotics, and autonomous systems. The plan also highlights the growing split between the U.S. and Chinese technology sectors, as both countries invest heavily in building the computing infrastructure that will power the next generation of AI.