The Great Surge in Computing Power: From Building Houses to Providing Water and Electricity – What’s Happening to China’s Computing Infrastructure?
Hello everyone, I’m your financial journalist. Today’s topic is a bit technical, but it’s closely related to everyone’s life and even the future of the country: computing power.
If we compare the internet to a highway, then data is the traffic flow, and computing power is the core engine that processes this traffic and enables information to be transmitted. In the era of artificial intelligence (AI), computing power is the new “oil” and “electricity.”
Recently, the 2026 China Computing Power Conference was held in Langfang, Hebei, sending out a series of significant signals. In simple terms, China’s computing power infrastructure has moved from a phase of “frantically building new facilities” to a new phase of “connecting the necessary infrastructure and using power efficiently.” Moreover, China’s computing power is even set to expand into space.
Let me break down this news into five key points and explain them in plain language.
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1. How strong is our foundation? The scale of intelligent computing has nearly doubled, with Hebei becoming a hub for computing power
First, let’s take a look at our current foundation. According to data from the Ministry of Industry and Information Technology, as of June this year, China’s intelligent computing scale (specifically for AI calculations) has reached 2185 EFLOPS (FP16), a year-on-year increase of 177%.
- What does a 177% increase mean? It means that our ability to process AI tasks has nearly doubled in less than a year. It’s like your internet speed: last year it was 100 megabits per second, and this year it’s 300 megabits per second, and it’s still improving rapidly.
- Hebei’s leading role is significant: The news specifically mentions Hebei. The province’s intelligent computing scale has reached 556 EFLOPS, with 2.5 million standard computing racks in use, both of which are the highest in the country.
- Why Hebei? Hebei is close to Beijing, has relatively abundant land and electricity resources, and lower electricity costs. For data centers, which consume a lot of power, affordable and stable electricity is a key competitive advantage.
- Real-world applications: Hebei isn’t just building hardware; they’ve also developed 441 specialized AI models for industries such as steel, chemicals, and healthcare, indicating that the computing power is actually being put to use.
In one sentence: China’s computing power has grown significantly, with Hebei becoming a national hub for computing power and a vital source of energy.
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2. From working independently to a coordinated national effort: The computing power network is becoming interconnected like a power grid
Previously, there was a major issue with computing power infrastructure: some regions had excess capacity, while others were in dire need; sometimes servers in one company were idle, while those in another company were under full load. This is what’s known as the “island effect.”
One of the highlights of the conference was the national integration and monitoring of China’s computing power platform.
- What does “one network, one coordinated effort” mean? Imagine each city having its own separate network; now, the country has created a large “national power grid” that automatically distributes power from areas with surplus to those in need.
- The role of the computing power platform: It brings together over 10,000 enterprise users, more than 200 service providers, and over 300 AI models. It functions like a huge “computing supermarket” and “dispatch center.”
- Benefits: Previously, you had to negotiate with each provider individually for computing power, and prices were often unclear. Now, the platform has accumulated billions of pieces of monitoring data, enabling comprehensive monitoring, coordinated management, and efficient allocation of resources.
In one sentence: Computing power is no longer a private asset; it’s become a national resource that can be used as needed, greatly improving efficiency.
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3. Computing power is heading into space: The Beijing-Tianjin-Hebei region is collaborating on a “space computing corridor”
This is the most futuristic and strategically significant aspect of the news: space computing power.
Previously, satellites were used mainly for photography and navigation. Now, they’re being transformed into “servers in the sky.” The Beijing-Tianjin-Hebei region is working together to create a “space computing corridor.”
- Why space computing power?
1. Ground limitations: Ground data centers are constrained by land, electricity, and heat dissipation, and there are latency issues with signal transmission.
2. Global coverage: Satellites can cover areas beyond the reach of ground-based stations, providing global computing services.
3. Low latency: For applications requiring real-time responses (such as autonomous driving and remote surgeries), space-based computing can be faster than traditional ground networks.
- How are the regions collaborating?
- Beijing Economic Development Zone (satellite and rocket production): Responsible for developing satellites and rockets to deliver computing power into space.
- Tianjin Economic Development Zone (strong infrastructure): Leveraging the “Tianhe” supercomputer center to integrate supercomputing with space computing power.
- Xiongan New Area (network integration): Connecting satellite internet with the ground computing network to achieve seamless integration.
- Langfang (interconnection): Utilizing its proximity to Beijing to provide millisecond-level fast connections between space and ground.
In one sentence: This is a major national initiative that extends computing power from the ground to space, creating a new landscape for technological competition and global influence.
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4. Computing power is becoming more accessible: Inclusive computing power makes it affordable for small and medium-sized enterprises (SMEs)
In the past, computing power was expensive and only accessible to large companies like Baidu, Alibaba, and Tencent. Now, policies are changing to make it more affordable:
- What is inclusive computing power? It means making computing power as affordable and accessible as water and electricity.
- How is this being achieved?
- Service lists released: The conference published a list of services to empower SMEs with computing power. The government or platforms will provide standardized, reasonably priced computing packages that SMEs can purchase directly.
- Cost reduction: By purchasing in bulk and optimizing resource allocation, the cost of computing power is being lowered.
- Real-world applications: SMEs can use computing power to optimize production processes or improve medical diagnostics.
Why is this important? If computing power remains exclusive to large companies, the benefits of AI will only benefit a few. Only when SMEs can use it can overall productivity and innovation truly flourish.
In one sentence: Computing power is becoming a basic resource, allowing SMEs to benefit from AI, which is key to economic vitality.
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5. A sober look: From building more to using it effectively – what challenges still need to be addressed?
Despite the impressive achievements, the report also highlights some practical issues:
- Regional disparities: The eastern coastal areas have more computing power and higher demand, while the central and western regions have abundant resources but lower conversion efficiency. For example, many power plants in the west are not connected to the east, or the power is not utilized.
- Insufficient integration with industries: Many computing facilities are built, but there’s a lack of clear use cases. For instance, a superdata center may be built, but local businesses may not have the necessary AI applications.
- Cross-regional coordination: Although there’s a platform, there are still challenges in coordinating data, sharing benefits, and standardizing technologies across different regions and operators.
What’s next?
- Targeted approaches: The eastern regions should leverage their market and innovation advantages to turn computing power into tangible value; the central and western regions should improve their ability to convert resource advantages into services.
- Coordinated planning: Computing power, storage, and network infrastructure need to be planned together; we can’t just build more facilities without ensuring the necessary support systems.
In one sentence: While the hardware infrastructure is leading, we still need to improve the software (application scenarios, efficiency, and regional coordination). The future competition won’t be about who builds the biggest facilities but about who uses computing power most wisely and efficiently.
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Journalist’s commentary:
The core message of this computing power conference is that China’s computing power infrastructure has entered a new phase of in-depth development and practical application.
Previously, we competed to see who built the most facilities; now, the focus is on who uses the power effectively, who connects everything, and who offers it at the best prices.
For ordinary people, this means that AI services will become cheaper and more widespread. For businesses, using computing power for upgrades will be essential. For the country, the computing power network is like a new “highway network” and “power grid” – the lifeline of the digital economy.
The concept of space computing power is particularly significant, indicating that our vision extends beyond the earth. This is not just a technological advancement but also a reflection of a country’s competitiveness.
Remember this: Computing power is the “new oil” of the digital age. Whoever masters efficient, affordable, and coordinated computing power will hold the key to the future.