China Plans $295 Billion AI Infrastructure Push Centered on Domestic Chips

Published by

Nidhi Kolhapur

June 9, 2026

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China has announced plans to build a nationwide AI data center network over the next five years, with state-owned telecom operators leading the project and domestic suppliers expected to provide at least 80% of AI chips. The initiative is designed to reduce reliance on foreign technology, with Huawei positioned as a key beneficiary. The move follows growing U.S. export restrictions on advanced AI chips and reflects China’s broader effort to develop a self-sufficient AI ecosystem. Alongside government spending, major technology firms are expected to invest heavily in AI infrastructure, making the sector a strategic priority through 2030.

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