China goes rural with data centres in quest to power AI

In China's Guizhou province, a sprawling complex designed like a European town, complete with a clock tower and a multi-arched bridge, hums with activity. This facility is Huawei's largest data center, part of a broader government strategy to establish digital infrastructure for artificial intelligence development in the country's less populated western regions. Dozens of such data centers have been built in southwestern Guizhou in recent years, a move aimed at supporting the AI boom on China's eastern coast. China is projected to nearly double its data center capacity within five years, driven by a tech race with the United States and a global effort to avert a computing shortage that could hinder AI expansion. The development has significantly transformed areas like Guian New Area, where the Huawei data center is located. Local shopkeeper Shu Peihua noted the area's transformation from a barren mountain to a more convenient and economically vibrant place, with increased trade and business opportunities. Vendors near the facility cater to data center workers, with roadside banners promoting the government's 'high-quality development' tech policy. In contrast to Europe and the United States, where data center construction often faces local opposition over energy prices, water usage, and noise, dissent in China is tightly controlled, particularly concerning central government policies. Residents in Guian, however, expressed positive views on the changes. A pancake vendor, who preferred not to give his name, mentioned the establishment of two universities since the facilities were built. Another resident, Li Xixiu, stated that the main road had been improved due to the centers, which have generally boosted the local economy. Villagers now find local employment, avoiding the need to seek work elsewhere. The government officially named this strategy 'Eastern Data Western Computing' in 2021. Locating data centers in regions like Guizhou and Inner Mongolia offers multiple advantages, including cooler climates, abundant renewable energy sources, and ample space. AI processing demands substantial energy, and China mandates that data centers source 80 percent of their power from renewables by the end of the decade. Regions with significant expansion in solar and wind capacity, such as Guizhou and Inner Mongolia, are thus ideal for operators aiming to meet these environmental commitments, according to Simeng Deng.

“

It used to be a barren mountain, but since the area has developed, transportation has become more convenient, trade has picked up, business opportunities have emerged.