China Embarks on Ambitious AI Data Center Project in Gobi Desert Amidst Chip Export Restrictions
China is moving forward with an ambitious plan to establish itself as a global leader in artificial intelligence
prativad 
BEIJING, China – China is moving forward with an ambitious plan to establish itself as a global leader in artificial intelligence by constructing approximately 40 massive data centers in the Gobi Desert, specifically within the Xinjiang region. This initiative aims to power the nation's burgeoning AI sector.
These new data centers are reportedly intended to house over 115,000 Nvidia AI chips. However, this goal faces significant hurdles due to current U.S. export restrictions, which prohibit the sale of these advanced chips to China without explicit U.S. government approval. The U.S. has indicated no plans to grant such approvals, raising questions about how China intends to acquire the necessary technology.
The remote Gobi Desert was strategically chosen for this large-scale development due to several key advantages. The area offers inexpensive land, significantly reducing the overall cost of these extensive infrastructure projects. Furthermore, the region is abundant in green energy sources, including wind and solar farms. This aligns with Beijing's commitment to sustainable development and efforts to minimize the carbon footprint of energy-intensive operations.
The method by which China plans to procure the critical Nvidia chips remains unspecified, leading some to view this aspect of the plan as aspirational in the face of ongoing international trade restrictions.
