The Secret Rise of China’s AI Desert Empire

Via Bloomberg, a report on Beijing’s efforts to build a small city of data centers in remotest Xinjiang:

There are approximately three dozen data centers spread across China’s western deserts that may one day have at their heart a cutting-edge processor made by Nvidia—the kind they’re not supposed to have.

The US government has been trying mightily to keep the California-based chipmaker’s most advanced technology out of Beijing’s hands. But a Bloomberg investigation has revealed that data center operators in remotest Xinjiang have other ideas. In this Bloomberg Originals mini-documentary, we uncover how Chinese firms aim to thrust their country to the front of the artificial intelligence arms race—and use American technology to do it.

Documents ranging from investment approvals to tender documents and company filings show how Chinese firms aim to install more than 115,000 of Nvidia’s most sophisticated chips in those data centers. Many are to be housed in processors located in a single giant compound—a mini-tech city in the middle of nowhere that could eventually be used to train foundational large-language models like those of Chinese AI startup DeepSeek.

That complex, if it comes to fruition, would significantly boost China’s computing prowess as President Xi Jinping pushes for breakthroughs. Such a project also would raise serious concerns for officials in Washington, who restricted Nvidia chip sales to China in 2022 over worries that advanced AI could give it a military edge. It remains an open question whether Beijing can circumvent US restrictions, but as this mini-documentary shows, it’s hoping for the best.



This entry was posted on Friday, August 1st, 2025 at 6:06 pm and is filed under China.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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