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 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



China Greenlights Data Centre Clusters in North and West


Chinese Province To Move Data Centres Under The Sea


Beijing Warns On ‘Disorderly’ Building Of Data Centres


China Speeds Up Construction of Data Centres

Iris Hong

Iris Hong is a senior reporter for the China desk, and has special interests in fintech, e-commerce, AI, and electric vehicles. She began her career in 2006 and worked for Interfax News Agency and for PayPal before joining Asia Financial in July 2020. You can reach out to Iris on Twitter at @Iris23360981

Recent Posts

VW Vows to Stay Ahead as China EV Revolution Gathers Pace

Volkswagen executive Stefan Mecha said the firm is committed to investing $16.26 billion in the…

15 hours ago

China Developer Sunac Posts $2 Billion 2022 Core Loss

The real estate firm was among many Chinese developers that defaulted last year as the…

16 hours ago

China’s Huawei Claims ‘Crisis is Over’ After Revenue Rise

The firm said it was now "out of crisis mode” following years of painful US…

17 hours ago

China to Check US Chip-Maker Micron Products in Security Review

The Cyberspace Administration of China said the move was aimed at protecting supply chains and…

1 day ago

Elon Musk Seen Hoping to Meet China PM on Next Visit

Musk met Li Qiang in 2019 when he was party secretary in Shanghai. Sources say…

2 days ago

Russia Wants All India Trade in Rupee-Ruble – Firstpost

Increasing oil deals between the two countries have already begun to corrode the US dollar’s…

2 days ago