Subsidized AI Computing for small domestic Chinese enterprises - 'Vouchers for computing power' disbursed across various Chinese urban areas
China is taking bold steps to boost its AI development and data center utilization with the introduction of computing power voucher programs in several cities. This initiative, first announced in December 2024, is part of a policy entitled "Implementation Opinions on Promoting the High-Quality Development of the Data Labeling Industry."
The program, aimed at helping small and medium enterprises (SMEs) access AI training power at heavily subsidized costs, has been enthusiastically embraced by several Chinese local governments. Beijing, Shanghai, Henan, Shandong, Chengdu, Shenzhen, and Ningbo are among the cities implementing this policy.
Beijing, for example, has allocated CN¥100 million for a voucher program, with applications now being accepted. Shanghai, on the other hand, has set aside CN¥600 million, with vouchers subsidizing up to 80% of AI rental fees for users. Shandong has dedicated CN¥30 million to its voucher program, with a further CN¥1 billion on the way to boost its local AI infrastructure. Chengdu has pledged CN¥100 million in voucher aid for research institutions.
The policy also aims to lower R&D costs for smaller firms and make the most of China's expanding data center footprint. However, this move raises logistical and legal questions, particularly concerning the distribution and management of these vouchers.
In addition, the policy is part of China's broader AI doctrine and is expected to play a crucial role in the country's data center utilization. One such initiative is the "Eastern Data, Western Computing" strategy, which aims to utilize cheaper power in western China for the needs of eastern coastal industries.
Moreover, China is planning to develop a unified, nation-spanning network of high-power compute. This ambitious plan is intended to maximize the utilization of empty data centers, with some currently operating at 20%-30% load due to rapid expansion.
China's data center growth has resulted in hundreds of data centers nationwide. However, there are concerns about the country's ability to fully utilize the existing network, a challenge that the computing power voucher program aims to address.
In conclusion, the computing power voucher program is a significant step towards boosting AI development and data center utilization in China. As the program continues to expand across more Chinese local governments, it remains to be seen how effectively it will address the logistical and legal challenges it presents.
