Digital System Stocks Surge as China’s Data Centre Plan Starts

 

Stocks of Chinese companies involved in data centre technologies, cloud computing and big data surged on Monday after Beijing last week approved the construction of 10 data centre clusters – a strategic project with investments estimated at tens of billions of dollars.

Stocks in the digital computing power sector rose by 7.8%, according to data provided by stock information portal 0033.com. Cloud computing service provider CapitalOnline Data Service and private network services provider NOVA Technology Corp each jumped by 20% on Monday.

China has completed the design of an integrated big data centre system with 10 clusters in eight national computing hubs, according to a press release posted last Thursday on the website of the National Development and Reform Commission (NDRC), the state economic planner.

This marks the kickoff of the “dong shu xi suan” project (“computing in the west, data from the east”), which will transfer the nation’s computing resources from the densely-populated eastern regions to the less-developed western regions, the statement said.

“The western regions have abundant resources, especially in renewable energy, and have the potential to meet eastern regions’ demand for computing power through the development of data centres,” Sun Wei, deputy director of the NDRC’s high-tech department, told the state-run Xinhua news agency.

Pu Junyi, an analyst from Orient Securities, estimates investments in the project to be hundreds of billions yuan (tens of billions of US dollars), based on the planned investment in a national data centre cluster in Shaoguan City in southern China’s Guangdong province. Servers and switches will account for a large portion of the investment, he noted.

Eight national computing hubs will be built in the Beijing-Tianjin-Hebei region, the Yangtze River Delta, the Guangdong-Hong Kong-Macao Greater Bay Area, the Chengdu-Chongqing economic circle, northern China’s Inner Mongolia autonomous region, southwest China’s Guizhou province, northwest China’s Gansu province and Ningxia Hui autonomous region, according to the NDRC statement.

 

• Iris Hong
 

 

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