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

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.