China Faces Potential Overcapacity in AI Computing Power
China is rapidly expanding its network of AI data centres, leading experts to warn of a potential excess in computing capacity. Over 250 centres have been constructed or are under construction, pushing China's total computing power to 246 Eflops. Yet, many centres are underutilized, with CPU use below five percent, indicating a risk of oversupply.
China is at risk of creating an oversupply of computing power due to its rapid construction of AI data centres, according to experts and industry professionals.
As of June, more than 250 internet data centres were either completed or underway, driven by investments from local governments, state-owned telecom operators, and private investors.
These AI facilities are often located far from China's main technology hubs.
The country's computing power reached 246 Eflops, constituting 26% of the global total, only behind the US.
However, a research report by China’s State Information Centre reveals that CPU usage in privately-held servers is less than 5%.
This underutilization suggests an impending glut as many data centres remain underused.
As of June, more than 250 internet data centres were either completed or underway, driven by investments from local governments, state-owned telecom operators, and private investors.
These AI facilities are often located far from China's main technology hubs.
The country's computing power reached 246 Eflops, constituting 26% of the global total, only behind the US.
However, a research report by China’s State Information Centre reveals that CPU usage in privately-held servers is less than 5%.
This underutilization suggests an impending glut as many data centres remain underused.
