China Connects the Dots: National Computing Power Network in the Works

China is taking decisive steps to construct a national network that will market computing power, aiming to manage the explosive growth of data centers after numerous local government-backed centers emerged, leading to excessive capacity and endangering their sustainability.

According to sources familiar with the matter and official documents, the plan includes a nationwide assessment of the sector by the state planner following a three-year data center construction spree. Beijing is also working towards establishing a state-run cloud service to harness excess computing power, collaborating with China's major telecom companies.

While the initiative represents a critical component in the tech race against the U.S., skepticism remains due to technological challenges. The project, started under the 'Eastern Data, Western Computing' infrastructure plan, has seen substantial investment but also numerous project cancellations, raising concerns over financial returns.

(With inputs from agencies.)