# Alibaba and China Telecom are launching a data center in southern China powered by the e-commerce giant's own chips.

*semiconductor · news · 2026-04-08 · CNBC*

## Key points

- Alibaba and China Telecom are launching a data center powered by Alibaba's Zhenwu AI chips.
- The facility will initially feature 10,000 Zhenwu semiconductors designed for large-scale AI model training.
- The data center in Shaoguan is planned to expand to 100,000 chips in the future.
- This move highlights China's accelerated push for domestic AI infrastructure amid U.S. chip restrictions.
- Chinese firms are focusing AI investments on industry-specific applications rather than matching U.S. spending levels.

**Companies:** Alibaba, China Telecom
**Countries:** China

[Read the full story on CNBC](https://www.cnbc.com/2026/04/08/china-alibaba-data-center-ai-chips-zhenwu.html)

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