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China’s Inland Provinces Race to Build Data Centers and New Industrial Clusters

Edited report based on China Daily, March 8.

China’s inland provinces are accelerating efforts to modernize their industrial bases, expand digital infrastructure, and cultivate strategic emerging sectors, as part of a broader national push for high-quality economic growth.

From the deserts of northwest Gansu to the wine-growing hills of Ningxia and the industrial heartland of northeastern Jilin, provincial authorities are pursuing coordinated strategies to upgrade traditional industries, leverage local resources, and position themselves in the country’s rapidly evolving digital and energy economy.


Ningxia: From Coal and Chemicals to Computing and Wine

Northwest China’s Ningxia Hui Autonomous Region has outlined an ambitious plan to develop advanced manufacturing, digital infrastructure, and clean energy sectors while maintaining a strong industrial base.

Chen Chunping, vice-chairman of the regional government, said Ningxia is promoting six major industrial clusters and four strategic sectors, combining technology, green development, and digital upgrades to transform traditional industries into competitive strengths.

The province has become a hub for modern chemicals, coal-to-liquids fuels, and high-performance fibers such as spandex and aramid. At the same time, its wine industry, centered on the Helan Mountains foothills, is gaining global recognition. Authorities are integrating wine production with tourism and digital tools, including AI-enabled quality tracing systems, to build internationally recognized brands.

Emerging sectors such as clean energy, new materials, and the digital economy are also priorities. Ningxia has positioned itself as a key node in China’s national computing infrastructure, with 22 large and ultra-large data centers currently operating and plans to scale total computing capacity to 600,000 petaflops.


Jilin: Industrial Upgrades and the Ice-Snow Economy

Northeast China’s Jilin Province is targeting industrial modernization alongside high-quality urban and infrastructure development.

Provincial leaders plan to upgrade traditional sectors such as automotive manufacturing and petrochemicals, while expanding new industries including renewable energy, advanced materials, pharmaceuticals, artificial intelligence, and bio-manufacturing.

The metropolitan area centered on Changchun is a key focus, accounting for over half of the province’s population and nearly 70 percent of economic output. More than 700 projects are planned to strengthen transportation, industrial collaboration, and urban services. By 2030, local authorities aim to boost the metropolitan area’s economic output to 1.35 trillion yuan ($195 billion).

Jilin is also leveraging its exceptional ice and snow resources. The province has 68 large ski resorts and ranks first nationwide for ski visitors, with winter tourism linked to an emerging industrial chain for sports equipment, including domestically developed bobsleds, carbon-fiber skis, and high-tech skates. The 33rd Winter Universiade in 2027 is expected to further strengthen the local winter economy.


Gansu: Resource-Based Transformation Meets Digital Expansion

Northwest China’s Gansu Province is focusing on transforming its traditional industrial base through innovation, green development, and digitalization.

Governor Ren Zhenhe highlighted efforts to modernize legacy sectors such as mining, metals processing, and heavy manufacturing. The province has launched hundreds of industrial upgrade projects annually, improving efficiency and reducing energy and water intensity.

Gansu is leveraging its abundant mineral and energy resources to build competitive industrial clusters. Notably, the province has developed nickel-copper-cobalt new materials clusters recognized nationally for small and medium-sized enterprises. By 2025, advanced manufacturing clusters had generated more than 900 billion yuan ($130 billion) in industrial output, accounting for nearly 90 percent of the province’s industrial growth.

Under the national East Data West Computing initiative, the Qingyang data center cluster has attracted over 370 enterprises. Total computing capacity is expected to exceed 150,000 petaflops by 2026, supporting AI, cloud computing, and other data-intensive industries.

Emerging sectors such as hydrogen energy, advanced energy storage, commercial aerospace, and low-altitude economy are also being promoted, with the goal of building a resilient, higher-quality regional economy.


Inland Provinces Drive China’s Broader Industrial Strategy

These three provinces illustrate a growing national trend: leveraging local strengths, upgrading traditional industries, and embedding digital and green technologies into industrial clusters. By combining established manufacturing bases with emerging sectors and data infrastructure, inland China is seeking to narrow the development gap with coastal regions, attract investment, and strengthen its role in the global economy.

For overseas investors, these strategies signal opportunities in clean energy, advanced manufacturing, digital infrastructure, and specialized regional industries—from Ningxia’s wine and computing hubs to Jilin’s ice-snow economy and Gansu’s mineral and data clusters.

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