Investing.com — GDS Holdings () and Vnet Group () shares rose about 8% on Tuesday after reports emerged that China is preparing to spend approximately 2 trillion yuan ($295 billion) over the next five years to build data centers across the country.

The American depository receipts of the Chinese cloud providers gained following news that key government agencies, including the National Development and Reform Commission, are drafting a blueprint to establish a network of interconnected computing hubs nationwide, according to people familiar with the matter.

State-owned firms such as China Mobile and China Telecom will operate the majority of the data centers, one of the people said. The data center blueprint remains in early discussions and details could change, the people added.

The planned investment represents a significant expansion of China’s data center infrastructure as the country seeks to support its artificial intelligence development. Other Chinese technology companies also moved higher on the news, with Alibaba ADRs up 0.4% and Baidu extending gains to 1.5%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.