NW China Draws 500 AI Firms, Generating $1.28 Billion as Power Costs Run One-Third of East
Updated
Updated · People's Daily · May 20
NW China Draws 500 AI Firms, Generating $1.28 Billion as Power Costs Run One-Third of East
3 articles · Updated · People's Daily · May 20
More than 500 AI-related firms had set up in Qingyang by 2025, generating $1.28 billion in revenue as northwest China rapidly becomes a major AI computing base.
One-third power prices in Xinjiang and operating costs more than 40% below eastern China are pulling telecom, cloud and tech companies west, where cooler weather and cheaper land further cut expenses.
Under-15-millisecond links from Qingyang to Beijing and Shanghai have made remote AI training and reasoning viable, while Huawei and other domestic chips are already deployed at scale in local computing centers.
Agreements with Kazakhstan and other partners are extending that capacity abroad, with Xinjiang positioned to process satellite, agriculture and pipeline-monitoring data for Central Asia.
Latency-sensitive services still must stay in the east, and Hami faces talent, infrastructure and supply-chain gaps, even as Beijing pushes westward data relocation and new data-center orders are forecast to reach 2.4 gigawatts in 2026.
With US data centers facing power grid delays, is China winning the global AI infrastructure race?
Is China's western AI boom creating a tech oasis or a massive, underused digital desert?
Can Western diplomacy counter China's 'Digital Silk Road' as it exports AI power to Central Asia?
From Green Power to Global AI: The Rise of Northwest China’s 100-Trillion Token Computing Hubs
Overview
Northwest China is quickly becoming a major hub for AI computing, driven by a surge in demand for AI processing power and a dramatic rise in token usage. This growth is fueled by the region’s ability to convert abundant green energy into the computing power needed for AI development. As token consumption skyrockets, Northwest China’s computing centers play a crucial role in meeting these needs, supporting both domestic and global AI services. This transformation not only strengthens China’s digital infrastructure but also positions the region at the forefront of the country’s AI revolution.