Alibaba and China Telecom Launch AI Data Center Powered by 10,000 Domestic Chips
April 8, 2026
In a significant move for China's push for technological self-sufficiency, Alibaba Group and China Telecom have jointly launched a new artificial intelligence data center in southern China. The facility is powered entirely by 10,000 of Alibaba's proprietary Zhenwu AI chips, marking a major step in the country's strategy to develop a domestic AI infrastructure ecosystem less reliant on foreign semiconductor technology.
The data center, located in Shaoguan, Guangdong province, was announced on Tuesday. China Telecom will own and operate the facility, which is equipped with Alibaba's semiconductors designed for both AI training and inference workloads. The Zhenwu chips are capable of supporting AI models with hundreds of billions of parameters, placing them among the technologies required for some of the world's largest and most advanced AI systems.
This development comes against a backdrop of intensified U.S. restrictions on China's access to key semiconductor technologies, including advanced AI chips from market leader Nvidia. These export controls have accelerated Chinese tech giants' efforts to create viable domestic alternatives. Alibaba, through its T-head semiconductor unit, has emerged as a key player in this endeavor. The company, also one of China's largest cloud computing providers, integrates its self-designed chips, data center infrastructure, and proprietary AI models into a vertically aligned service offered through its cloud division.
The launch coincides with internal restructuring at Alibaba aimed at prioritizing AI development. CEO Eddie Wu announced the formation of a new technology committee, which he will chair. The committee includes Chief AI Architect Zhou Jingren, Alibaba Cloud CTO Li Feifei, and Group CTO Wu Zeming. In a company memo, Wu stated the changes were made to "accelerate" Alibaba's AI ambitions.
Industry implications of the partnership extend beyond the initial deployment. The partners indicated the Shaoguan data center is expected to eventually scale up to a capacity of 100,000 chips. Such large-scale, domestically-built computing clusters are becoming a focal point in China, following last month's activation of a cluster powered by Huawei's Ascend AI chips. While U.S. tech firms are projected to spend massively on AI infrastructure, Chinese companies like Alibaba and China Telecom are pursuing a more targeted investment strategy, focusing AI applications on specific industries such as healthcare and advanced materials to drive nearer-term revenue growth and return on investment.
Source: CNBC
