Key points
- China Unicom’s new data center in Xining boasts a planned capacity of 20,000 petaflops.
- The center currently utilizes nearly 23,000 domestically produced AI chips.
- Alibaba’s T-Head supplied approximately 72% of the currently installed chips.
- The initiative reflects China’s push for technological self-reliance amidst US trade concerns.
China is accelerating its drive for technological independence, as evidenced by the recent launch of a massive data center by China Unicom. Located in Xining, Qinghai province, the $390 million facility is being built with domestically produced artificial intelligence chips, signifying a crucial step away from reliance on foreign technology.
The state broadcaster CCTV highlighted the project, emphasizing the use of chips from Alibaba’s T-Head unit and other Chinese companies, including MetaX, Biren Tech, and Zhonghao Xinying. This development comes amidst heightened US-China trade tensions and American concerns over the national security implications of advanced technology transfers.
The data center’s current computing power stands at 3,579 petaflops, achieved through the deployment of nearly 23,000 domestically manufactured AI chips. Alibaba’s T-Head, a significant contributor, provided around 72% of these chips.
Further expansion is planned, with China Unicom intending to incorporate chips from Tecorigin (Wuxi), Moore Threads, and Enflame in the future. This strategic move underscores China’s commitment to fostering its domestic semiconductor industry and reducing dependence on international suppliers.
Alibaba’s T-Head is actively competing with international giants, notably Nvidia. Their newly developed PPU AI chip, boasting 96 gigabytes of memory and HBM2e technology, directly challenges Nvidia’s H20, currently the most advanced model permitted for sale in China.
This competitive landscape reflects China’s ambition to become a leading player in the global AI chip market. The project highlights China’s significant investment in bolstering its technological self-sufficiency.
The timing of this launch is particularly noteworthy, given recent US concerns voiced during trade talks in Madrid, which center on blocking the shipment of advanced technology, including chips, to China.
This data center, therefore, represents a direct response to these concerns and a demonstration of China’s commitment to developing its own technological capabilities, even amid international pressure. While several companies involved declined to comment, the sheer scale of the project speaks volumes about China’s commitment to its technological independence.
