China’s plans to build massive data centers in Xinjiang Province have raised concerns about the country’s ability to access restricted Nvidia chips, despite US export controls on the technology.
According to Bloomberg analysis of investment approvals and tender documents, local governments in Xinjiang plan to install more than 115,000 Nvidia Corp. AI chips in three dozen data centers across China’s western deserts. The region is rich in wind and solar energy, which will power the data centers, reducing their reliance on expensive imports.
However, US officials have not issued a clear estimate of the number of restricted Nvidia chips currently in China. While some senior Biden administration officials believe there are around 25,000 banned chips in the country, others disagree with this assessment. The US Commerce Department did not respond to detailed questions about the issue.
Chinese companies like DeepSeek and other AI startups aim to use these chips for training large language models, such as those used by OpenAI’s GPT4o and Google’s Gemini. Nvidia has stated that it does not provide support or repairs for restricted products, but some Chinese companies claim they have obtained H100 or H200 chips through black markets.
US policymakers have raised concerns about China’s plans to access restricted technology, citing national security risks. The US has imposed curbs on China’s access to advanced semiconductors and machines used to make them, which has led to tensions with Beijing.
Despite these restrictions, Chinese companies continue to build data centers, driven by the promise of affordable power from local energy sources and government incentives for green computing. Experts believe that accessing restricted technology will be challenging for China, but some players like DeepSeek are making progress in developing their own chips.
The Xinjiang project aims to be a major player in China’s emerging AI industry, with potential implications for global technological dominance.
Source: https://www.bloomberg.com/graphics/2025-china-data-centers-nvidia-chips