Introduction

On July 24, 2025, Reuters reported that China’s Ministry of Industry and Information Technology (MIIT) is orchestrating a nationwide network to sell surplus computing power, aiming to curb a data-center glut and monetize unused capacity. The plan involves interconnecting thousands of local government-backed data centers and telecom operators like China Mobile, Unicom, and Telecom to create a state-run cloud platform.Reuters+1Reuters+1

“Everything will be handed over to our cloud to perform unified organisation, orchestration, and scheduling capabilities,” said Chen Yili, deputy chief engineer at the China Academy of Information and Communications Technology.Reuters

Why it matters now

• Optimizes stranded capacity: China’s data-center boom led to thousands of underutilized facilities—this plan creates an outlet for excess compute.
• Accelerates AI ambitions: A unified compute network could significantly boost capacity for domestic AI training and inference workloads.
• Strategic economic pivot: Selling surplus power aligns with China’s push for technological self-reliance and supply chain resilience.

Call-out

China is turning excess servers into strategic assets—building a national compute pipeline by 2028.

Business implications

• Cloud service providers may face pricing pressure or loss of market share as a state-backed platform enters the fray.
• AI startups and researchers could gain access to cheap, scalable infrastructure, if the program offers real-time orchestration.
• Telecom operators and local governments benefit from monetizing excess capacity, but must invest in interconnects and orchestration tooling.

Looking ahead

China’s ambitious standardization goal aims for nationwide interconnection by 2028. However, real-time load balancing across multiple regions, especially integrating AI accelerators and power grids, remains a technical challenge. Observers note this strategy mirrors its broader goal of technological sovereignty.

The upshot: China’s compute-sharing network could rewire AI infrastructure economics, transforming excess capacity into a national asset and reshaping how compute is provisioned worldwide.

Sources: Reuters, “China plans network to sell surplus computing power in crackdown on data centre glut,” July 24, 2025.