AI Drives Surge in Computing Power Demand, Accelerating Construction of 'Super Highways' for Computing Networks – Insights into Industry Trends from the 2023 China Computing Conference

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Large-scale model algorithms are driving artificial intelligence toward broader applications, leading to a surge in demand for intelligent computing power. Around computing hub nodes, 130 backbone optical cables have been constructed, greatly enhancing data transmission performance. The industrial chain continues to expand, with China now ranking first globally in the production of computing products such as servers and computers. These developments were highlighted at the 2023 China Computing Conference held recently in Yinchuan, Ningxia, showcasing computing power as a critical foundation for digital and intelligent transformation across society.

From scientific research to industrial production and daily life, computing power is permeating every aspect of production and living, much like water and electricity. In recent years, a series of important policies and initiatives have been introduced at both national and local levels, along with the implementation of major engineering projects, driving rapid growth in the computing power industry.

Minister of Industry and Information Technology Jin Zhuanglong presented the latest data at the conference. As of now, the total scale of operational data center racks nationwide exceeds 7.6 million standard racks, with computing power reaching 197 exaflops (197EFLOPS), ranking second globally. The computing power industry has begun to take shape, with China leading the world in the production of computing products such as servers, computers, and smartphones.

In particular, advancements in AI technologies like large-scale models have further increased the demand for computing power. According to the China Comprehensive Computing Power Index (2023) released by the China Academy of Information and Communications Technology (CAICT) at the conference, general computing power accounts for 74% of the current computing scale, while intelligent computing power makes up 25%, a 60% year-on-year increase.

"This reflects the significant role of large-scale models in driving the demand for AI computing power," said Yu Xiaohui, President of CAICT. He noted that China's computing power structure is optimizing, with intelligent computing power experiencing explosive growth.

Huawei Chairman Liang Hua also emphasized that industries such as autonomous driving, life sciences, and smart manufacturing are rapidly evolving, leading to escalating demands for computing power to support ultra-large AI models and massive datasets. Intelligent computing power tailored for large-model training has become the primary driver of computing power growth.

With the surge in demand for intelligent computing power, multiple stakeholders are ramping up high-performance AI computing supply, accelerating key technological breakthroughs, and unlocking the potential of AI computing power.

Minister Jin Zhuanglong stated that the Ministry of Industry and Information Technology will continue optimizing infrastructure layout. This includes refining the top-level design for high-quality development of computing facilities, coordinating computing resources, increasing high-performance AI computing supply, enhancing network reliability, and improving efficiency in resource utilization.

Enterprises are also intensifying AI innovation efforts and upgrading computing infrastructure. In Zhongwei, Ningxia, the "China Unicom AI Training-Inference Integrated Zhongwei Hub Construction Action Plan" was recently launched. During the conference, China Unicom representatives announced plans to build the first AI training-inference integrated hub node in western China, which will provide AI training and inference services, boosting the development of intelligent computing in Ningxia and the broader western region.

Meanwhile, China Telecom is strengthening independent R&D in AI frameworks, algorithm models, and scheduling platforms, constructing the Xinghe AI Algorithm Platform, and collaborating with partners to develop industry-specific large models and intelligent applications. China Mobile is systematically advancing the integration of general computing, AI computing, supercomputing, and quantum computing, initiating the construction of Asia's largest standalone AI computing center.

"The construction of computing power infrastructure is in full swing. While accelerating the development of national hub nodes and large-scale data centers, the importance of edge computing infrastructure is becoming increasingly evident," said Zhang Zhiyong, Chairman of China Tower. He pledged to continue improving public computing power distribution, offering edge intelligent computing and shared computing services based on AI hardware and software, expanding computing power supply, and realizing the vision of ubiquitous computing and pervasive intelligence.

The realization of 'ubiquitous computing power' depends on the support of computing networks. Data from the Ministry of Industry and Information Technology and the National Bureau of Statistics show that China has built 130 backbone optical cables around computing hub nodes, significantly improving data transmission performance. In the first half of this year, investments in new information infrastructure such as 5G and data centers grew by 13.1%, while investments in integrated new infrastructure like industrial internet and smart transportation increased by 34.1%.

Industry experts note that, in practice, heterogeneous computing and software incompatibility are common. Connecting existing computing centers with different architectures through networks can optimize the allocation, sharing, scheduling, and release of computing resources while lowering the barrier to application.

'To maximize the utility of computing power and directly contribute to GDP, two technical challenges must be addressed: first, ultra-broadband, ultra-low-latency network connections for large-scale computing centers nationwide; and second, computing power scheduling,' said Gao Wen, an academician of the Chinese Academy of Engineering.

During the conference, China Mobile, in collaboration with multiple supercomputing centers, AI computing centers, and cloud service providers, launched the largest nationwide 'Baichuan' computing power grid integration initiative. The platform integrates four types of computing power—general computing, AI computing, supercomputing, and quantum computing—into a unified national computing network map. It has partnered with national supercomputing centers, authoritative AI computing providers, and leading cloud service providers for grid integration, while also collaborating with CETC and Boson Quantum to achieve optical quantum computing integration. Currently, the platform offers a total computing power supply exceeding 10 EFLOPS.

'We aim to provide a new model for computing power supply by building a unified computing network, making computing power as accessible as electricity,' said Wang Xiaoyun, Chief Scientist at China Mobile.

Industry insiders point out that the accelerating digitalization, networking, and intelligentization across various sectors are driving exponential growth in demand for computing services, expanding the diversity of computing network development. With the continuous optimization of China's computing network layout and the further activation of national computing resources, the empowering effect of computing power will be fully unleashed, propelling the digital economy to new heights.