ByteDance to invest US$614 million in computing centre in China amid high AI demand

ByteDance, the parent company of TikTok and Douyin, is set to invest 4.5 billion yuan (US$614 million) in a new computing centre in the city of Datong, in northern Shanxi province, as China’s most valuable unicorn boosts computing power to accommodate its popular artificial intelligence (AI) services.

The technology giant, known for its popular short video apps, has been aggressively expanding in the AI sector. Its ChatGPT-like service Doubao has become one of China’s leading AI platforms, and the company last month unveiled updates for a range of AI models and products.

A document published on the Shanxi government website confirmed the approval of the Volcano Cloud Taihang Computing Centre II Phase project. Operated by ByteDance-controlled Volcano Cloud (Datong) Technology, the project will cover 205,013 square metres (2,206,742 sq ft), equivalent to the area of nearly 30 football pitches.

The development will include six two-storey data centre buildings, one six-storey integrated facility, as well as other supporting infrastructure. The centre is expected to house 15,604 12-kilowatt server cabinets and 510 network cabinets. The provincial government first released a detailed blueprint for the project in July.

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How does China’s AI stack up against ChatGPT?

How does China’s AI stack up against ChatGPT?

High-performance computing centres are crucial for training large language models (LLMs), managing extensive data processing, and ensuring the scalability and efficiency of AI-driven services. Despite US export restrictions that have limited access to the world’s advanced semiconductors, China’s Big Tech firms are leveraging local chips to enhance computing capacity.

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