Chinese firms are planning to install more than 115,000 Nvidia AI chips, including H100 and H200 models, in approximately 39 data centers located primarily in the western deserts of China, notably in the Xinjiang and Qinghai regions. These data centers, approved in the fourth quarter of 2024 by local governments, are part of China's broader strategy to enhance its artificial intelligence capabilities. The Nvidia chips intended for these projects are currently banned under U.S. export restrictions, raising questions about how the hardware will be acquired. One company involved, DeepSeek, has expressed interest in collaborating on these developments. Construction of the data centers is already underway, aiming to create a substantial computing infrastructure to support China's AI ambitions.