China stipulates that state-funded data centres to use only domestic AI chips – report

It is reported that Beijing has issued a guidance that requires new data centre projects that have received any state funds to only use domestically developed AI chips. Thus, ruling out the use of foreign AI chips with authorities even ordering data centres that are less than 30% complete to remove all previously installed foreign chips.

Adding to that, the government has also order for said centres to cancel plans to purchase foreign chips as it appears that there is a continued fallout between the US and China on this matter at least.

For some context, most data centres in China do received some form of state funding in their setting up. So, this ruling will impact the majority of the development in this space. One of the sources say that this directive is already starting to have impact with a facility in the northwestern province now being suspended after earlier planning to deploy Nvidia chips instead.