China’s inland city of Shaoguan is undergoing a rapid transformation as major technology firms invest heavily in building data centres, part of Beijing’s broader strategy to boost the country’s artificial intelligence (AI) capabilities. Located in Guangdong province, Shaoguan’s rural landscapes and mountainous terrain have become sites for extensive data infrastructure projects by companies including Alibaba, Tencent, and Huawei, which are attracted by the availability of land, low electricity costs, and a cooler climate.
The development aligns with the Chinese government’s push to expand computing power beyond the populous coastal cities and reinforce its ambitions to become a global leader in AI and related technologies. Shaoguan’s local government has announced plans to build 23 data centre complexes with a combined investment of approximately Rmb111.6 billion ($17 billion), an amount equivalent to around 65 percent of the city’s economic output last year. Officials anticipate the initiative will drive economic growth and modernization in a region that has lagged behind the Pearl River delta’s manufacturing boom.
The data centre construction has led to a significant increase in energy consumption, which rose fivefold in the first half of this year as several projects neared completion. Local economic growth reached 5 percent during this period, surpassing provincial and national averages. Shaoguan’s deputy vice president of the software company Denovo, Cai Dayin, noted that the government’s focus on the computing cluster has substantially boosted the city’s economy.
However, residents express mixed feelings about the rapid development. Some acknowledge modest economic improvements but highlight serious environmental and social costs. One local shop owner near a China Unicom-operated data centre described the area’s air as "covered in dust" and "filthy," pointing to pollution problems linked to ongoing construction.
The expansion has also impacted local communities more tangibly. Several villages have seen land requisitioned for data centre projects, sometimes with delayed or incomplete compensation. A former farmer lamented losing farmland critical to his livelihood, emphasizing reliance on relatives due to the absence of alternative income sources. Job opportunities generated by the projects appear limited; while the influx of workers has boosted demand for housing rentals and basic services, higher-skilled roles tend to be filled by outsiders commuting from larger cities such as Shenzhen or Guangzhou.
Local employment in the centres themselves is reported to be scarce and low-wage, with one cleaner’s monthly income cited around Rmb2,000. Some village officials view compensation payments as an initial step toward improving residents’ welfare, noting potential benefits from secondary economic activities tied to the data centre workforce.
Despite government ambitions and economic growth figures, some residents remain pessimistic about long-term local advantages. A shopkeeper near one facility said she intends to leave following the completion of construction, expressing regrets about deteriorating living conditions and limited prospects.
Requests for comments from Shaoguan’s authorities went unanswered. The situation highlights the complex balance between China’s technological and economic goals and the localized social and environmental costs experienced by communities in the country’s interior regions.