More than $3.2 billion worth of computing projects are being built in China around restricted Nvidia processors, according to an investigation by Reuters. The report identified 150 procurement notices, investment plans, and construction contracts that suggest a high demand for hardware despite U.S. export restrictions.
The projects involve Nvidia's H100, H200, and H800 processors. These shipments are not limited to major technology giants; the hardware is also being utilized by local government-backed ventures, universities, and regional computing centers. One facility in Gansu province is reportedly being repurposed to house thousands of Nvidia processors by the end of 2026.
While Nvidia stated that trade sanctions have reduced its data center market share in the region to zero, the investigation suggests that smuggling routes and procurement efforts are bypassing these limitations. Large Chinese firms, including Tencent, Alibaba, and ByteDance, continue to show a preference for Nvidia hardware over domestic alternatives, even when facing long delivery delays.
Project operators face significant risks if enforcement of trade limitations tightens. Analysts noted that there is currently no confirmation that all the GPUs have reached their intended premises, and firms may face expensive architectural redesigns if they are forced to switch to domestic Chinese chips.
Nvidia CEO Jensen Huang previously expressed disagreement with Anthropic CEO Dario Amodei regarding the U.S. chip ban. Huang stated in an interview that he believes the goal of such restrictions should be to foster competition.
