China is making significant strides in the global tech landscape by investing heavily in datacentres across the nation.
The “East Data West Computing” project, an ambitious initiative launched in February 2022, is well underway, with an estimated $6.1 billion already spent on constructing eight national datacentre hubs.
This strategic move is designed to enhance China’s computing capabilities and distribute computational resources more efficiently across the country’s vast geography.
What is “East Data West Computing” Project?
The “East Data West Computing” project aims to balance China’s data processing capabilities by leveraging the geographical advantages of its western regions. As China’s eastern regions generate vast amounts of data, there is a growing need to process this data efficiently.
By relocating some of the data processing to the less congested western regions, China hopes to optimize its national computing resources.
This project is part of a broader strategy to strengthen China’s technological infrastructure, with goals to double the nation’s computing power by 2025.
Liu Liehong, the director of China’s National Data Bureau, recently disclosed these advancements at the 2024 Big Data Expo.
He highlighted that, as of now, the total rack size in these data centers has exceeded 1.95 million racks, a substantial increase from 1.46 million in March 2024.
The utilization rate has also improved to 63%, a 4% rise since 2022, reflecting the efficient use of these new facilities.
Achievements and Future Goals
One of the notable achievements of this project is the impressive network latency between eastern and western hub nodes, which has now met the 20-millisecond requirement.
This low latency is crucial for maintaining the speed and efficiency of data processing across vast distances.
Additionally, the power utilization efficiency (PUE) of the newly built data centers has reached an impressive 1.04, significantly lower than the global average of around 1.5.
A lower PUE indicates more efficient energy use, which is both cost-effective and environmentally friendly.
The project also includes plans to create 10 national datacentre clusters. These clusters will further enhance the nation’s data handling and processing capabilities, providing a robust infrastructure to support various technological advancements, including artificial intelligence (AI), big data analytics, and cloud computing.
A Response to Global Tech Competition
China’s aggressive investment in its data center infrastructure comes amid increasing global competition in technology.
Recent technological advances, especially in fields like AI, have the potential to reshape economies, societies, and even global politics. Superpowers like the United States and China are racing to outdo each other in this domain.
The US has implemented restrictions on the export of certain technologies to China, aiming to maintain its own technological edge. In response, China is doubling down on developing its own capabilities, striving to become a global leader in computing and data processing.
The construction of these data centers is not just about expanding computing capacity; it is also a strategic move to secure China’s position in the global tech race.
By developing state-of-the-art data centers with high energy efficiency and low latency, China is setting the stage for future technological advancements and ensuring it remains competitive globally.
The Impact of Datacentre Expansion on China’s Tech Landscape
The expansion of China’s data center infrastructure is expected to have a far-reaching impact on its tech landscape.
China can lead in various tech sectors with enhanced computing power and more efficient data processing capabilities.
The country’s focus on improving its technological backbone is likely to accelerate innovation in AI, machine learning, and other cutting-edge fields.
Moreover, by improving energy efficiency and reducing network latency, China is not only boosting its tech capabilities but also setting a benchmark for sustainable tech development.
The lower power utilization efficiency (PUE) achieved by these data centers demonstrates China’s commitment to sustainable growth in the tech sector.
The “East Data West Computing” project is a clear indicator of China’s strategic planning and commitment to technological advancement.
By harnessing the power of data and optimizing its use across the nation, China is preparing for a future where computing power and data processing will play an increasingly vital role in shaping economies and societies worldwide.