China's tech giants are pouring billions into Shaoguan, a southern Chinese region being transformed into a data centre hub. Alibaba, Tencent, and Huawei are developing computing infrastructure there, attracted by ample land, cheap electricity, and a cooler climate. This push is part of Beijing's multitrillion-yuan effort to build AI infrastructure in inland cities, serving coastal metropolises and establishing China as a tech superpower.
While officials view the sector as a growth driver, residents worry about tangible benefits amid the construction frenzy. Local governments see data centres as a way to attract investment and convert low-productivity land into revenue-generating tech hubs, especially after the property sector collapse reduced land sale revenues. Shaoguan plans 23 data centre complexes for a total investment of Rmb111.6bn ($17bn), 65% of the city's annual economic output.
In the first half of the year, data centre energy usage rocketed fivefold, and local economic growth jumped to 5%. However, despite this growth, annual disposable incomes in 2025 averaged around Rmb36,000 ($5,300), dropping to less than Rmb26,000 ($3,900) in rural areas. Residents remain concerned about pollution and whether the boom will offer lasting benefits once construction ends.
Source: Financial Times Companies · Summarized by HeadlinesBriefing