Since the joint release of the “Action Plan for the High-Quality Development of Computing Power Infrastructure” by the Ministry of Industry and Information Technology and five other departments on October 21, 2023, China has entered a rapid development phase in its computing power infrastructure. A recent report from the data analysis firm Yuehu Data highlights the swift expansion and significant efficiency improvements in China’s computing power infrastructure, which is increasingly being applied across various sectors, demonstrating its robust economic driving capacity.
In February 2022, China took proactive measures by launching the construction of national computing power hubs in eight regions, including Beijing-Tianjin-Hebei and Chengdu-Chongqing, and planning ten national data center clusters. This marked the official start of the “East Data West Calculation” project, which promotes comprehensive development across supply chains in IT equipment manufacturing, information communication, foundational software, and green energy, significantly enhancing the nation’s overall computing power level.
The rapid advancement of computing power infrastructure is pivotal in seizing the technological high ground in the era of artificial intelligence. It leverages a multiplier effect on economic development and aids China’s manufacturing sector in achieving leapfrog growth. Moreover, it permeates daily life through diverse application scenarios, stimulating consumer potential and driving high-quality economic development.
For instance, in the new business ecosystem empowered by AI, “AI + e-commerce” has emerged as a fresh highlight in the consumer space. According to Yuehu Data, major e-commerce platforms are now exploring the integration of AI throughout the transaction process, with future prospects of addressing pain points for both merchants and consumers. AI is gradually embedding itself in the entire transaction processes between businesses and consumers, likely opening up new growth avenues amid a backdrop of consumption diversification. Leading domestic e-commerce platforms have introduced innovative applications like digital human live streaming and AI-powered shopping assistants, improving user experience and significantly boosting transaction efficiency, showcasing the tremendous potential of AI technology in the e-commerce sector.
Additionally, AI applications in video production are becoming increasingly widespread, lowering production costs, shortening cycles, and enhancing efficiency. Yuehu Data anticipates a vast potential for AI’s role in production processes, especially in a context where movie production costs remain high. The emergence of a broad ecosystem fueled by lower barriers to video content creation in the short drama era may pave the way for widespread participation in film production as AI-generated video becomes more mature.
In the realm of hardware production, the AI smart hardware market is flourishing. Yuehu Data forecasts a surge in AI smart hardware launches in the summer of 2024, with “AI +” becoming a pivotal marketing point for manufacturers. Traditional devices are receiving “AI +” upgrades, encompassing PCs, smartphones, and educational hardware. Moreover, new AI products such as AI office notebooks and smart glasses are hitting the market. This intelligent hardware boom is in a phase of rapid commercial sales growth, with user penetration rates continually rising, creating new opportunities for market expansion.
Looking ahead, investment in computing power infrastructure is expected to keep expanding, becoming a key driver of economic and social development. Projections suggest that by 2025, the core computing power industry in China could reach a scale of 4.4 trillion yuan, with related industries potentially soaring to 24 trillion yuan. According to calculations from the China Academy of Information and Communications Technology, every yuan invested in computing power generates an increase of 3 to 4 yuan in GDP, highlighting the crucial role of computing power infrastructure in economic growth.
In conclusion, Yuehu Data believes that the development of computing power infrastructure has become a vital engine for China’s economic advancement, with its multiplier effects gradually becoming evident. As technology continues to evolve and application scenarios expand, computing power infrastructure is set to inject even stronger momentum into the high-quality development of China’s economy and society.
