China Converts 760 Acres of Farmland into $37 billion AI Hub

- China to transform Wuhu farmland into $37 billion AI data hub. - Project aims to boost computing power amid U.S. chip restrictions. On September 21, 2025, Cryptopolitan reported that China launched a $37 billion plan to repurpose 760 acres of farmland in Wuhu for AI data centers. This project aims to counter U.S. tech export restrictions. Led by local governments and private actors, the initiative will clear rice fields on a Yangtze River island to construct server farms. This move seeks to bolster China's computing power and reduce its dependency on foreign technologies. As part of its national AI strategy, China is providing significant subsidies to support the development. These subsidies could cover up to 30% of AI chip costs, offering financial relief to organizations adopting cutting-edge processors. Meanwhile, U.S. export regulations on high-performance chips, such as Nvidia products, have prompted China to pivot toward alternative solutions. Beijing plans to use networking technology from Huawei and other telecom providers to connect its scattered AI data hubs, creating unified computing pools. This system will redistribute computational power from energy-rich western regions to high-demand eastern areas, like the Yangtze River Delta. Project insiders have dubbed this development the "Stargate of China," as it aims to combine efficiency with functionality. Existing data centers in remote locations will focus on training large language models (LLMs), while new urban facilities will handle "inference" tasks to support faster applications for end-users. This dual-tier strategy ensures the optimal use of computing resources for diverse AI workloads. Wuhu's "Data Island," which already hosts major operations from China Telecom, Huawei, China Mobile, and China Unicom, is strategically located near major cities, including Shanghai, Nanjing, Hangzhou, and Suzhou. This position makes it a central part of China's plan to integrate dispersed facilities and improve resource efficiency. The project is a critical step in China’s strategy to reduce its reliance on U.S. technology while scaling up its AI infrastructure.