According to a research report, the Chinese government is preparing to invest approximately 2 trillion yuan (about $295 billion) over the next five years to build a national network of data centers. This initiative aims to strengthen the country's artificial intelligence capabilities and develop its AI infrastructure.

The National Development and Reform Commission is one of the primary government bodies responsible for drafting this blueprint. The plan involves establishing an interconnected network of computing hubs across the country, which are expected to be primarily operated by state-owned enterprises such as CHINA MOBILE (00941) and CHINA TELECOM (00728).

This national effort is believed to be crucial for consolidating fragmented regional resources. By linking disparate data facilities into a cohesive network, it is anticipated to significantly accelerate the adoption of AI technologies within China.

The report highlights that the continuous emergence of advanced AI applications, including agentic AI, physical AI, and multimodal tools for generating video and images from text, is driving a surge in token usage. The rate of token consumption is far outpacing the growth in computing power supply, leading to a worsening shortage of computational resources.

Furthermore, factors such as U.S. export controls and the accelerating adoption of domestic AI chips within China are expected to keep the supply of mainstream high-end chips in a state of tightness.

The analysis concludes that this comprehensive AI construction blueprint, combined with the soaring demand for AI tokens, will provide powerful growth momentum for China's AI infrastructure development. It is also seen as a key driver that will hasten the process of substituting imported AI chips with domestic alternatives.