China Unicom, one of China’s leading telecommunications network operators, is set to boost its investment in computing power by 28 percent in 2025. This increase reflects the company’s commitment to capitalize on the surging demand for artificial intelligence (AI) infrastructure in China.
China Unicom is boosting its computing power investments this year. Photo: Shutterstock
This aggressive investment strategy comes as China’s tech giants also unveil ambitious AI investment plans. Alibaba Group Holding, the parent company of the South China Morning Post, has allocated at least US$52 billion for building AI and cloud computing infrastructure over the next three years. This investment marks the largest computing power project by a private Chinese company.
As state-owned infrastructure operators, private enterprises, and local governments all increase their AI infrastructure investments, China’s total AI spending could potentially rival or even exceed the substantial Stargate Project. The Stargate Project is a joint venture involving the US start-up OpenAI and the Japanese conglomerate SoftBank, which includes a promised investment of US$500 billion over the next four years.
China Unicom reported a 17 percent decline in overall capital expenditures in 2024. However, spending on computing power, including data centers, increased by 19 percent, emphasizing the company’s dedication to AI. To further support critical AI infrastructure, the company has allocated a “special budget” dedicated to these key initiatives. This strategic allocation reflects the increasing importance of AI in China’s technological landscape.
