Technology
China expands computing and power infrastructure amid rivalry over artificial intelligence
While the US maintains a lead in AI models, investment, and facilities, China is rapidly constructing data centers despite hardware limitations.
The short version
- China is speeding up data center and energy construction through national programs like 'East Data, West Computing' to support artificial intelligence development.
- The United States continues to lead in overall data center volume, private investment, and notable AI models, though performance benchmarks indicate a narrowing gap.
- US leaders and analysts cite domestic regulatory hurdles and local pushback against data centers as risks to the American lead, while China faces constraints in accessing advanced microchips.
Key facts
- The Stanford Institute for Human-Centered Artificial Intelligence recorded 5,427 US data centers in 2025 compared with 449 in China, though it noted the metric excludes differences in facility size and computing capacity.[Fox News]
- Stanford's 2026 AI Index reported that in 2025, the US produced 59 notable AI models and received $285.9 billion in private AI investment, compared to 35 notable models and $12.4 billion in private investment for China.[Fox News]
- Stanford's index indicated that as of March 2026, the performance lead of the top US AI model over the top Chinese model narrowed to 2.7%.[Fox News]
- China is concentrating computing capacity in western hubs such as Inner Mongolia and Ningxia under its 'East Data, West Computing' initiative to leverage land availability and renewable energy.[Fox News]
- US-China Economic and Security Review Commission Vice Chairman Mike Kuiken observed that while China constructs physical infrastructure rapidly, it remains constrained by restrictions on procuring advanced chips.[Fox News]
- Chinese Embassy spokesperson Liu Chang stated that artificial intelligence development should not be viewed as a geopolitical contest and advocated for international cooperation.[Fox News]
What remains uncertain
- Total AI expenditure in China remains unverified by private metrics because Stanford noted official private investment data understates Beijing's overall spending backed by state funds.[Fox News]
- Claims regarding foreign backing of domestic US data center protests remain disputed, with Gordon Chang alleging China-linked involvement while Mike Kuiken attributed pushback primarily to local concerns over utilities and noise.[Fox News]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.