China distributes AI computing subsidies to local businesses - 'vouchers for computing power' distributed in numerous Chinese urban areas

China's Computing Power Voucher Program: Empowering Small Businesses and Filling Data Centers

China is making significant strides in its data center expansion, with a focus on the western parts of the country for cheaper power to serve the needs of the eastern coastal industries. This "Eastern Data, Western Computing" strategy has led to the rapid growth of hundreds of data centers across the country.

In an effort to maximize the utilization of these empty data centers, China has started rolling out "computing power voucher" programs in cities including Beijing, Shanghai, Henan, Shandong, Chengdu, Shenzhen, and Ningbo. These vouchers are aimed at helping small and medium enterprises (SMEs) access AI training power at heavily subsidized costs.

Shanghai, for instance, has allocated CNY 600 million for computing power vouchers, subsidizing up to 80% of AI rental fees for its users. The city has also rolled out CNY 100 million in funding for a data voucher program specifically for AI LLM training. Shandong has dedicated CNY 30 million to its voucher program, with a further CNY 1 billion on the way to boost its local AI infrastructure. Chengdu has pledged CNY 100 million in voucher aid for research institutions.

The localized voucher plan is continuing to expand across more and more Chinese local governments. The Beijing Economic-Technological Development Area and Henan Province have both announced plans for their own voucher programs. Shanghai's voucher program is part of a broader policy aimed at lowering R&D costs for smaller firms and making the most of China's quickly expanding data center footprint.

However, the policy is not without its challenges. China aims to equip 39 new data centers with 115,000 illegal Nvidia Hopper GPUs, raising logistical and legal questions. The Chinese region that has made the largest investment in computing power voucher programs for SMEs is not explicitly identified in the available search results.

Despite these concerns, the voucher program is proving to be a success. Some data centers are operating at only 20%-30% load due to rapid expansion outpacing demand. This is particularly true in Shanghai, where the demand for AI training power is growing rapidly.

In December 2024, the voucher plan was first introduced in China in a policy entitled "Implementation Opinions on Promoting the High-Quality Development of the Data Labeling Industry". The policy is part of China's AI doctrine and is intended to spread the load of all of the nation's various data centers.

As of now, Beijing is accepting applications for its vouchers. The computing power voucher programs are a significant step towards China's goal of becoming a global AI superpower, while also providing a much-needed boost to small and medium-sized enterprises.

China distributes AI computing subsidies to local businesses - 'vouchers for computing power' distributed in numerous Chinese urban areas