China’s data center industry is evolving into an important digital infrastructure market in the world. Driven by government support, AI demand, and large-scale investments from operators and cloud providers, the country is building an integrated and market-ready computing ecosystem.

From renowned hyperscale hubs in coastal regions like Shanghai and Guangdong to emerging inland clusters in Guizhou and Inner Mongolia, China’s data center landscape reflects a shift toward balanced regional development under government initiatives such as “East Data, West Computing.”

At the same time, advancements in green energy integration, AI-optimized infrastructure, and first-of-its-kind underwater data centers are redefining capabilities and scalability norms.

This article presents an analysis of China’s data center industry, along with ongoing and upcoming developments, the principal industry players, and the role China plays in shaping the global data center ecosystem.

China Data Centers: Market Overview, Ongoing Projects, and Future Trends

In the following paragraphs, we present some organizations, their projects, and zones for your information; to name a few, China Telecom, China Mobile, VNET, National Big Data (Guizhou) Comprehensive Pilot Zone, Gui'an Digital Sector, Huawei Cloud Data Center, China Unicom, Tencent Cloud, and Jinko Power.

China Telecom - Lin-gang Data Center

China Telecom announced in December 2025 that it is investing USD 3.67 billion to build Phase II of its Lin-gang Data Center project in Shanghai’s Lin-gang Special Area.

The project will cover about 350,000 square meters and have a total capacity of 290 MW. The first part of this phase (Phase 2.1) will include around 49,000 square meters.

This data center will combine several key functions, including an international communication gateway, a national big data center, and core nodes of Tianyi Cloud. It is designed to become a global digital infrastructure hub, with a focus on using renewable energy and smart management systems to reduce carbon emissions.

Once completed, the facility will provide very high computing power to support AI development and industrial innovation. It will also offer reliable infrastructure for large technology companies and help improve international cloud services.

The project will be completed in stages and supports China’s goal of strengthening its digital economy and improving its global technology position.

China Telecom Future Plans  

For 2026, China Telecom plans to increase this investment share to 35% of its planned RMB 73.0 billion (USD 10.7 billion) CAPEX to further solidify its strategic foundation in computing infrastructure, which includes its AIDC and China data center market size capabilities.

The increased investment share will support the building of new generation AIDC infrastructure, focusing on high-density, high-power projects and 100 MW-scale hub parks

China Telecom Hainan

The China Telecom Hainan (Sanya) International Information Park project has started construction. It aims to support the development of the largest computing power cluster in Hainan.

The project covers about 70 acres and is an important digital infrastructure initiative supporting the Hainan Free Trade Port strategy. Its goal is to build an offshore data center and an advanced computing hub in Hainan.

Once completed, it will work together with the Hainan (Haikou) International Information Park to create a “north-south dual-core” data center network in the region.

The Sanya Information Park is designed as a modern computing center that combines large-scale data processing, storage, and security services.

The project plans to install 6,075 medium- and high-density racks, support around 6,000 computing servers, and deliver about 800 PFlops of basic computing power or up to 30,000 PFlops for AI computing.

China Telecom Partners with Alibaba

Alibaba Group and China Telecom have launched a new data center in Shaoguan, Guangdong Province, in southern China. This facility type is specially designed for AI training and inference.

The data center is powered by Alibaba’s self-developed Zhenwu AI chips and includes around 10,000 of these semiconductors. In the future, it is expected to expand to as many as 100,000 chips.

This facility can support AI models with hundreds of billions of parameters. China Telecom will own and operate the data center.

Alibaba Cloud develops its chips through its T-head division and is one of China’s cloud computing companies.

Many industries, including healthcare and advanced materials, can use the computing power from this data center.

China Mobile's Guangdong-Hong Kong-Macao (Shaoguan) Data Center

China Mobile’s Guangdong–Hong Kong–Macao (Shaoguan) data center has officially started operations. The project has a total investment of 5.6 billion yuan (about USD 820 million).

The plan includes building 4 data centers, 2 power centers, and 1 computing operations and maintenance center, with a total of 32,000 standard cabinets.

The project is being developed in two phases. Phase 1 is already completed and operational, with 16,000 cabinets, making it a national A-level data center in South China. Phase 2 is expected to be completed and operational by 2026.

Once fully completed, the data center will provide over 10,000 PFLOPS of intelligent computing power. It will become an important hub for intelligent computing in South China.

Shaoguan GDS Computing Power Cluster Project (Phase II)

The total investment is USD 0.27 billion (RMB 1.85 billion) for the Shaoguan - GDS Computing Power Cluster Project (Phase II) filing and approval, construction rack, Qujiang District.

In March 2026, the Development and Reform Bureau of Qujiang District, Shaoguan City, approved the Shaoguan-International Data Computing Power Cluster Project (Phase II) as part of the national hub node of the Guangdong-Hong Kong-Macao Greater Bay Area of the national integrated computing power network for the record.

Among them, the second phase covers an area of about 65.6 acres, with a total construction area of 88,394.18 square meters and plans to install 123.4 racks, with a single rack power of 14 kW and a total installed capacity of 1.728 MW.

The project is planned to start and end from June 01, 2026, to December 01, 2028, and the construction unit is Shaoguan Wanguo Yunyao Data Technology Co., Ltd.

This project is under the purview of the Guangdong Province Investment Project Online Approval and Supervision.

First Wind-Powered Underwater Data Center (Shanghai)

The UDC project is located in the Lin-gang Special Area of the China (Shanghai) Pilot Free Trade Zone. It has an investment of 1.6 billion yuan (about 226 million USD) and a total power capacity of 24 MW.

This underwater data center project will use more than 95% green electricity. It is expected to reduce power consumption by 22.8% and cut water and land use by 100% and over 90%, respectively.

The project will be built in two phases. In Phase 1, it aims to achieve a power usage effectiveness (PUE) of 1.15 or lower.

Under China’s green data center policy, all new large and mega data centers must have a PUE of less than 1.25 by the end of 2025. For projects in national hub areas, the PUE must be no higher than 1.2.

In March 2025, the Shanghai municipal government announced plans to expand its intelligent computing cloud industry to over 200 billion yuan by 2027.

Signed Agreement to Cooperate

Several companies, including Shanghai Hicloud Technology, Shenergy Group, China Telecom (Shanghai branch), INESA, and China Communications Construction Company’s Third Harbor Engineering unit, have signed an agreement to work together on a 500 MW offshore wind-powered underwater data center (UDC) project.

This agreement brings multiple partners together to support the development of the large-scale 500 MW project.

However, underwater data centers are still a new concept, and their construction is currently in the early stages.

VNET—A Leading Carrier-Neutral Data Center Service Provider in China

VNET Group provides large-scale data center solutions for customers in major cities across China.

The company operates in more than 30 cities, with over 50 data centers in China and a total capacity of 889 MW. Some of its data centers are still expanding or being built in phases.

VNET has developed hyperscale data center clusters in key regions such as the Beijing-Tianjin-Hebei area, the Yangtze River Delta, and the Guangdong-Hong Kong-Macao Greater Bay Area.

With its growing network of data centers, the company aims to provide better internet infrastructure services and support business innovation and growth.

BJ15 Data Center

The data center is located in the northern part of Beijing, about 16 km from Beijing Capital International Airport.

It has excellent transport access, being close to major roads like Jingcheng Expressway, Changjin Road, and Jingshen Road.

The data center park supports future expansion for large customers. Part of the facility is already operational, and we can add more capacity in phases based on customer needs.

It also offers multiple network connection options.

N-HB Campus 02 Data Center

The data center sits in an area where many other data centers have already been built, forming a strong industry cluster.

The park has its own power substation, which ensures a stable and sufficient electricity supply.

It has a large site area, allowing seamless expansion and phased development. The data center is being built in stages and can start operations step by step.

It also provides different network services based on customer needs.

VNET Investment Plans 2026

For the full year of 2026, VNET has projected significant growth in its financial performance and has outlined a substantial investment plan focused on expanding its data center capabilities.

VNET’s investment strategy for 2026 is weighted toward capacity expansion and technological frameworks:

Capital Expenditure: The company expects its capital expenditure for the full year to be between (USD 1.47 billion) RMB 10 billion and (USD 1.76 billion) RMB 12 billion.

AI-Driven Infrastructure: A primary focus of these investments is the development of scalable and high-performance data centers designed to capture accelerating demand driven by artificial intelligence (AI).

National Big Data (Guizhou) Comprehensive Pilot Zone 

China has created a national-level big data testing zone to explore how data can be better managed and used.

The National Big Data (Guizhou) Comprehensive Pilot Zone was set up with approval from key government bodies. Its goal is to improve how data is regulated, build large data center clusters, and support digital transformation. The zone focuses on managing data resources and developing related industries.

The pilot zone has also built an important national computing network hub and developed 47 major data center clusters. It has become one of the main centers for advanced computing in China.

The digital economy now contributes about 42% of Guizhou Province’s GDP. The zone has attracted major companies, including Huawei Cloud’s global headquarters. In addition, the Guiyang Big Data Exchange has reached a transaction volume of over 4.9 billion yuan.

Gui'an's Digital Sector

Gui'an's digital sector, led by big data operations, has expanded rapidly. The district has attracted 27 major data centers, including facilities run by Huawei, Tencent, and Apple, plus the three national telecom carriers.

Gui'an New Area becomes Intelligent Computing Hub

Gui'an New Area is a national-level new area in China and is growing in the big data sector. It has attracted 26 large data centers, with plans for over 1.4 million racks and a total computing power of more than 76 EFLOPS.

More than 98% of this computing power is used for AI workloads and intelligent computing, making Gui’an one of the regions in China for advanced computing.

Recently, Gui’an has focused on becoming a national computing hub. One key project is the China Telecom Cloud Computing Guizhou Information Park, the first data center in the area. Its computing capacity has increased by 300%, making it one of the largest and most active computing hubs in southern China. This infrastructure helps industries go digital. 

The region is also developing advanced manufacturing, especially in electronics like chips, components, and devices. Software development is growing, with support from companies like Huawei Cloud attracting businesses to the area.

Gui’an has set aside 1,000 hectares of land for future growth. It plans to support 8 to 10 million servers, serving its role in the digital economy of western China.

Gui'an Huawei Cloud Data Center

Huawei estimates that the global AIDC (Artificial Intelligence Data Center) capacity will exceed 100 GW by 2028, generating a market space of over USD 600 billion in the energy infrastructure sector alone.

Huawei has deployed the nation's largest-scale AI computing cluster in Gui'an. The company has established a unified, nationwide computing network on three core hubs—Gui'an (Guizhou), Ulanqab (Inner Mongolia), and Wuhu (Anhui).

Cool climate and 30% cheaper power turn Guizhou's rugged terrain into a national AI data stronghold. 

Guizhou Province

Guizhou province in southern China is emerging as a hub in the age of artificial intelligence (AI). It owes this to having an optimal environment as a data center site essential for big tech.

There are 50 data centers run by corporations operating in or newly building in Guizhou. Along with Chinese corporations such as Huawei, Tencent, Alibaba, and China Mobile, even global big tech like Apple has chosen Guizhou as a data center location.

Super Large Data Center

Gui'an New Area attracts a series of large-scale data centers and supporting projects to settle in the area. China Mobile Data Center, China Unicom Data Center, Gui'an Huawei Cloud Data Center, and Tencent Gui'an Qixing Data Center are established, forming a super-large data center cluster.

As of January 2025, the Gui’an New Area had introduced 23 data centers, forming the largest domestic intelligent computing cluster nationwide (with a computing power scale of 53 EFLOPS). Through the "Computing Power + Industry" model, this data center supports the implementation of large-scale artificial intelligence model applications, contributing to Alibaba's digital economy growth rate in China.

As a strategic hub node under the "East Data, West Computing" initiative, it forms a digital AI infrastructure network together with the Guiyang-Gui'an National-Level Internet Backbone Direct Connection Point, achieving an annual reduction of 810,000 tons of carbon dioxide emissions.

It has been recognized as a key project of the Guizhou Province Big Data Industry Development Innovation Zone. The Gui'an Huawei Cloud Data Center had previously been included in the National Green Data Center List.

Huawei Partners with Hainan Prefecture, Qinghai to Build a 100% Clean Energy Data Center

Phase I of the Big Data Industry Park project in Hainan Prefecture, located in China's northeastern Qinghai Province, has revolutionized data center construction. Huawei's modular data center has met standards, helping the Hainan Prefecture build a high-standard big data center in the region.

The Ministry of Industry and Information Technology (MIIT) classifies Hainan Prefecture as a first-level region for big data center development.

China Unicom Global

China Unicom Global Limited is the international arm of China Unicom, with more than 40 offices worldwide. The company is upgrading its data centers to make them more intelligent. This has led to a 60% increase in AI data center (AIDC) contracts compared to last year.

Its total data center capacity has reached 2,650 MW, with 30 EFLOPS of intelligent computing power. In 2025, the company plans to invest around USD 8 billion to complete its “14th Five-Year Plan.”

For the long term, the company will continue its strategy of integrating computing with networks, combining data with AI, and linking digital technology with the real economy.

Expansion of Intelligent Computing Centers

The company is actively building and operating 10,000-chip intelligent computing centers in strategic locations to optimize its computing power infrastructure. Specific sites mentioned include Shanghai Lingang, Hohhot, Zhongwei (Ningxia province), and Sanjiangyuan (Qinghai province).

Interim Results

Based on the 2025 Interim Results Announcement from China Unicom, the company has outlined several key investments and expansions related to data centers and computing power infrastructure.

Planned Capital Expenditure (CAPEX)

For the full year of 2025, China Unicom expects its total CAPEX to be approximately USD 8.06 billion (RMB 55 billion). While this covers overall network investment, the company dedicates a significant portion to the "intelligent upgrade" of data centers and the expansion of computing power.

These centers aim to promote the integration of advanced computing power with green electricity.

Tencent Cloud

For 2026, Tencent’s outlook for its data center-related infrastructure is defined by a significant expansion in capacity and a doubling of strategic investment to support its AI ambitions.

Tencent’s Market Dynamics in China

As one of the largest internet platforms in China, Tencent will continue to leverage its substantial "internal cloud" needs to maintain high purchasing power for data center hardware.

The company aims to sustain its leadership in China by integrating these new data capabilities into its core businesses, which are expected to drive further engagement and revenue in 2026.

Significant Capacity Expansion

The company has confirmed that its GPU capacity is on track to "step up" during the course of 2026 and 2027. This expansion is designed to serve two primary purposes:

• Internal AI Demands: Supporting the training and inference needs of foundation models like HY 3.0 and agentic services within the Weixin ecosystem.

• External Cloud Services: Providing the necessary infrastructure for external customers, where Tencent expects revenue to "grow robustly" in 2026 while maintaining profitability.

Jinko Power set to enter to build Data Center in China

Jinko Power signed an investment agreement with the Zhongwei Municipal People's Government to build a data center in the Zhongwei Data Center Cluster in three phases.

Conclusion

China’s data center market today represents a combination of scale, strategy, and technological advancement. The integration of the current landscape with a pipeline of upcoming and expanding projects highlights an industry that is evolving in sophistication.

With AI-driven demand accelerating investments, regional clusters becoming specialized, and sustainability becoming a core design principle, China is developing into a next-generation computing backbone that facilitates both domestic digital transformation and global technology ecosystems.

While challenges such as energy efficiency, cost optimization, and emerging technologies like underwater data centers remain areas to watch, the overall path is clear. China is positioning itself as a global leader in high-performance, AI-ready, and sustainable data center infrastructure.

As the market continues to mature, it is expected that it will play an important role in influencing global data center trends, investment flows, and the future of digital infrastructure worldwide.

Track China’s Data Center Opportunities with Confidence

As China accelerates its expansion in AI-ready and hyperscale data centers, staying updated on upcoming data center projects in China is essential to stay ahead in this fast-growing market.

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