China has invested $6.1 billion in data centre projects, govt says  


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China’s objective is to establish a comprehensive computing power infrastructure system by the end of 2025 in the face of US restrictions 

China has invested more than 43.5 billion yuan ($6.1 billion) in data centre investment over the past two years, according to an official statement on Thursday reported by Chinese state publication Xinhua. 

The funds have paid for the construction eight computing hubs as part of China’s “East Data, West Computing” initiative, launched in 2022 by Chinese National Development and Reform Commission (NDRC). 

The concept involves storing data in the more economically developed eastern regions of China, where digital and industrial activity is concentrated, and processing it in the western regions, which have plenty of land and energy but lower data demand.   

The $6,1 billion investment includes the deployment of three server hubs on China’s populous east coast and five hubs in China’s central/western corridor.  

Speaking at a big data expo in Guiyang, in southwest China’s Guizhou Province, Liu Liehong, the head of the National Data Administration, reported that total investments linked to the hubs deployment had surpassed 200 billion yuan ($28.2 billion). He also mentioned that the number of data center racks now exceeds 1.95 million. 

This project is a critical element of China’s digital infrastructure strategy, aiming to boost the capacity of inland areas to store and manage data. China also has plans to create 10 national data center clusters as part of this broader effort.  

The push comes as the country has faced tight sanctions from the US, which have included exports of some advanced computing products. 

As computing power is emerging as a vital productive force in the digital economy, Liu explained that China will support cities in exploring new approaches over the next few years to determine the most effective solutions for data infrastructure development countrywide. 

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Nokia dismisses Samsung link to Mobile Networks unit

Nokia shot down speculation from a Bloomberg report claiming that it is prepping its mobile unit for a US$10 billion sale for suitors including rival Samsung.

In a statement, the Finnish vendor said the it had “nothing to announce” in regards to the speculations and that “no related insider project exists”.

Nokia added that it is “committed to the success of its Mobile Networks business, a highly strategic asset for both Nokia and its customers.”

It claimed the unit had “made significant progress” in correcting its cost-bases, and winning new deals and customers.

“Nokia is focused on ensuring that Mobile Networks is positioned to serve its customers building the best performing networks, investing in its portfolio and creating value for Nokia’s shareholders,” Nokia said in its statement.

Mobile Networks contributes a significant portion to Nokia’s business. In Q2 2024, Mobile Networks contributed €1.97 billion in revenue a year-on-year plunge of 25%. Gross profit for the division dipped 3% from €877 million in 2023 to €851 million this year.

Nokia’s overall net revenues was €4.46 billion in the quarter an 18% year-on-year drop off. Nokia added in 2023 its financial results were spurred by spending from Indian operators that were ramping up 5G plans.

In the original Bloomberg report, sources speaking to publication claimed that Nokia had been speaking to advisors for options for its mobile networks which had for years struggled against rivals Ericsson and Huawei. Sources said Nokia is considering a partial sale, a tie-up with rivals or spinning it off.

The unit is valued roughly at $10 billion said the sources. Nokia’s total market value is around US$24.7 billion, after the news story broke and raised shares by 5.1% to €3.98, reported Bloomberg.  

Nokia CEO Pekka Lundmark said in the vendor’s Q2 earnings statement that “In Mobile Networks the market dynamic remains challenging as operators continue to be cautious”. In August, Nokia announced a slew of deals in Argentina, Brazil, Eastern Europe, Ghana and Malaysia.  

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FiberLocator, the US’s most prominent fibre data platform, has announced the addition of data on UK fibre providers to its extensive database, which already holds the fibre footprint and route maps of 1000+ carriers, more than 5 million connected buildings, and 6,000 data centres.

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