China's AI Infrastructure Expansion to Compete with US Stargate Project
China is gearing up to enhance its digital infrastructure to support its artificial intelligence (AI) goals, following the announcement of the US$500 billion Stargate Project by the Trump administration. The Stargate Project, led by SoftBank Group, OpenAI, Oracle, and MGX, aims to invest billions in advanced data centres in the US to bolster AI development. China's rapid progress in establishing intelligent computing centres has caught the attention of analysts, with expectations that the gap between China and the US in computing infrastructure will continue to narrow.

With approximately 250 advanced data centres and computing facilities in progress across China, the nation's computing power is estimated to reach 230 eflops by 2023, slightly behind the US. The Chinese government is anticipated to increase investments in AI and semiconductors to match the US's commitment to the Stargate Project. This move is seen as crucial to keep pace with the US in the evolving AI landscape.
The Stargate Project's key partners, including Arm, Microsoft, OpenAI, Oracle, and Nvidia, are at the forefront of advanced AI technology. Data centres play a vital role in hosting high-capacity servers and data storage systems for AI projects, with more businesses utilising them for their computing needs. The scale of investment in the Stargate Project has sparked discussions on Chinese social media platforms, highlighting the project's significance in comparison to previous US government-funded initiatives.
In contrast, the Biden administration's Chips and Science Act, with a budget of around US$280 billion, focuses on semiconductor manufacturing and research in AI and quantum computing. Despite the massive investment in the Stargate Project, tech mogul Elon Musk raised doubts about the financial backing of the project's main investors. However, OpenAI's CEO, Sam Altman, reassured that the project was well underway, inviting Musk to witness the progress firsthand.
China's Ministry of Industry and Information Technology (MIIT) has expressed its commitment to optimising the construction of intelligent computing centres nationwide. Companies like DeepSeek and ByteDance have introduced AI models that require fewer computing resources, potentially setting a new standard for AI development in China. Despite challenges posed by US export controls on advanced chips, Chinese firms are increasingly well-positioned to compete with the US in the AI sector.
China intensifies digital infrastructure development for AI ambitions
Stargate Project in the US drives focus on advanced data centres
China's computing power expected to reach 230 eflops by 2023
Source: SCMP