China Converts Farmland into AI Data Centers with $37 Billion Investment

Sep 22, 2025
China is transforming farmland in Wuhu into AI data centers as part of a $37 billion initiative to centralize computing power and compete with the U.S. in AI infrastructure.

China is converting farmland in Wuhu into a major AI data hub as part of a $37 billion investment to enhance its computing power. This initiative, dubbed the 'Stargate of China,' aims to centralize AI compute power by transforming rice fields on a 760-acre island into server farms. The project involves the construction of data centers operated by Huawei, China Mobile, China Telecom, and China Unicom.

The data centers are strategically located near major cities such as Shanghai, Hangzhou, and Nanjing to improve AI inference speeds for local populations. This effort is part of a broader strategy to consolidate existing but dispersed data centers into a unified network using Huawei's UB-Mesh technology.

Local governments are supporting this transformation by offering subsidies that cover up to 30% of AI chip procurement costs. This move is seen as a response to U.S. export restrictions on advanced AI chips, which have forced China to rely on domestic solutions and optimize existing resources.

The Wuhu project is a significant step in China's plan to close the gap with the United States, which currently holds a dominant share of global AI computing capacity. By linking data centers across the country, China aims to maximize its computing resources and strengthen its position in the global AI landscape.

We hope you enjoyed this article

Consider subscribing to one of our newsletters like Silicon Brief or Daily AI Brief.

Also, consider following us on social media:

AI Chips & Datacenters AI Brief AI Brief (X)
Free newsletter

Silicon Brief

Weekly coverage of AI hardware developments including chips, GPUs, cloud platforms, and data center technology.

AI Token Webinar

Whitepaper

Tensordyne Napier: What If One Rack Could Do the Work of Nine?

Tensordyne

This Tensordyne whitepaper presents Napier, an inference-focused AI processor and rack-scale system based on the company’s TDN Math logarithmic number system. It examines infrastructure requirements for large mixture-of-experts and agentic models, compares major inference architecture approaches, and details the TDN AIP processor, TDN72 pod, TDN Link fabric, and Napier Ultra configuration. The paper reports simulation-based performance, cost, and accuracy-validation results, including Tensordyne’s projected comparison of one Napier rack with a nine-rack Nvidia Rubin plus Groq deployment; the chip is reported as taped out and in fabrication.

Read more

You may also like

Free, six days a week

Daily AI Brief: the AI news that matters, in your inbox.