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Hongxin Electronics Technology Group’s stock increased after announcing plans to invest approximately CNY12.8 billion (around USD1.8 billion) in constructing a new artificial intelligence computing center to address the rising demand across multiple industries.
The company’s shares closed today nearly 5% higher at CNY30.69 (USD4.26), while the broader Shenzhen market gained 0.5%.
The company’s subsidiary signed an agreement with the Qingyang government in northern Gansu Province to develop the AI data center, either independently or in partnership with ecosystem collaborators. The project was disclosed in a statement released late last week.
This phased project will encompass a high-performance intelligent computing hub capable of delivering at least 40,000 PFlops, a server assembly facility designed to support large language model training and inference, and several other computational infrastructure initiatives, including a high-performance computing research institute.
Qingyang is recognized as one of China’s eight national hubs for computing infrastructure and represents a strategic area for the company’s expansion in the sector. The city’s combined computing power stood at over 50,000 PFlops at the end of last year, with forecasts indicating it will exceed 100,000 PFlops by year’s end and reach 300,000 PFlops by 2026.
Last September, the company partnered with China Mobile’s Gansu branch to build an AI data center in Qingyang, leveraging local renewable energy sources, boasting a capacity of more than 3,000 PFlops. Additionally, a collaboration with China Telecom’s local branch led to the development of a 2,000 PFlops computing center within the city.
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