China's Strategic Push in AI Infrastructure: A Wake-up Call for the US and Allies

A recent report from Strider Technologies, Inc., and the Special Competitive Studies Project (SCSP) reveals China's rapid advancement in artificial intelligence (AI) infrastructure. This detailed analysis presents a concerning picture of China's state-driven initiatives aimed at gaining a competitive edge in AI technologies. The report underscores the necessity for a serious reconsideration of the strategic landscape by the United States and its allies.

Accelerated AI Expansion

The study, titled China's AI Infrastructure Surge: How PRC Data Centers and AI Models Bridge Military Ambitions and Global Connections, marks the first comprehensive account of China's ambitious program to establish over 250 AI-specialized data centers. These data centers are crucial for meeting China's 2025 computational capacity objectives, essential for deploying sophisticated AI systems on a large scale.

Strider and SCSP's findings indicate that China's actual processing power significantly exceeds publicly stated targets, suggesting a much broader and long-term infrastructure campaign than previously understood. This rapid progress positions China as a formidable player in the global AI arena, merging commercial growth with military modernization and international engagement strategies.

Strategic Implications

Greg Levesque, CEO and co-founder of Strider, warns that this report serves as a critical alert not only to the US but to all nations that share democratic values. The Chinese Communist Party (CCP) is pursuing a nationwide initiative aimed at achieving supremacy in AI, which underpins its geopolitical strategy that integrates economic power, military enhancement, and global influence. Levesque notes, "The AI infrastructure in China is not just a national capability; it’s a platform that can redefine global power dynamics and set future standards for AI."

This sentiment is echoed by Ylli Bajraktari, president of the SCSP, who emphasizes the urgency for the US to prioritize AI infrastructure as part of its national security strategy. He states, "To remain competitive, our national security framework must center around AI infrastructure."

Findings from the Report

The joint report meticulously identifies 856 Chinese entities involved in AI data center development, comprising direct stakeholders and their parent companies. Alarmingly, 88 of these 856 entities are connected to the People’s Liberation Army (PLA) or organizations sanctioned by the US, indicating that the military applications of AI have been on the radar from the outset of these developments.

The analysis reveals how China aggressively subsidizes hardware and software through national policy mandates, local financial incentives, and international collaborations. Furthermore, cutting-edge technologies such as 'embodied intelligence'—machines that can perceive and interact with the environment in real-time—are already integrated into PLA operations, impacting surveillance, drone systems, and cognitive warfare.

Key Insights

1. Rapid Data Center Growth: Among the 207 identified AI data centers associated with Chinese organizations, over half (106) are currently operational. The pace of establishment for these centers has surged, with an increase of over 100% between 2023 and 2024.

2. Dependence on Foreign Software: The PLA-related data centers still rely heavily on American and allied software, spotlighting the urgent need for targeted export control regimes and licensing regulations to protect essential AI software and data center operational technologies.

3. International Connections: Out of the 318 direct stakeholders involved in AI data centers, 28 have collaborated with organizations in the US and other allied nations since 2017. This overlap highlights how international research channels may inadvertently support China's AI development goals.

The complete report serves as an essential resource for understanding this rapidly evolving landscape and its implications on global security and technology.

Conclusion

As China forges ahead with its AI ambitions, the United States and its allies must reevaluate their strategies in technology and national security. This joint report by Strider and SCSP is an urgent reminder of the necessity for proactive measures in safeguarding competitive advantages in AI technology. The time to act is now to ensure a balanced and secure technological future.