- China has just launched a $37 billion plan to build an AI data center “mega-cluster”, dubbed “China’s Stargate”, to directly compete with the US.
- The project is located on a 760-acre (307 ha) island in the Yangtze River, near major economic centers like Shanghai. Its goal: to enhance AI computing power, optimize AI inference and training, and support the development of national AI infrastructure.
- Huawei and China Mobile are key technology corporations participating in this project, with strong backing from the government and President Xi Jinping.
- This plan is part of the “AI Industry Development Action Plan” – an overall strategy to help China catch up with the US in the AI infrastructure race.
- According to Epoch AI, the US currently accounts for about 75% of total global AI computing power, while China only reaches about 15%. This gap has led Beijing to aim for accelerated investment, seeing AI not only as a tool for economic development but also as a key factor in defense technology.
- The US is implementing its own Stargate project, led by OpenAI with Oracle and SoftBank. This project was announced in January 2025 with an initial phase worth $100 billion, aiming for a total investment of $500 billion over four years. The first data center is under construction in Abilene, Texas, and the US is surveying 16 other states for expansion.
- These moves have contributed to strong growth in Oracle’s stock this year, although it saw a slight decrease of 1.71% in the most recent session. SoftBank, on the other hand, recorded an increase of 2.84%.
📌 China launches “$37 billion Stargate” to bridge the AI infrastructure gap with the US, which currently holds 75% of global computing power, while China only reaches about 15%. The project is located on a 307-hectare island in the Yangtze River, near major economic centers like Shanghai. Huawei and China Mobile are key technology corporations participating in this project. China is promoting AI infrastructure to compete economically and in defense, while asserting AI as a national security strategy.
