China megacity to build US$30 billion hi-tech infrastructure cluster by 2026, and investors will be key

Shanghai’s internet speeds and cellphone coverage should get a big boost as undertaking includes large-scale upgrades to 5G networks and computing power

Chinese leadership wants to see the digital economy pick up the slack and drive growth, and regional powerhouses such as Shanghai are poised to take the lead

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China wants to give its computer-driven digital economy a shot in the arm, and major cities such as Shanghai are well positioned to make hi-tech strides. Photo: EPA-EFE

Published: 8:00am, 20 Oct 2023

Shanghai is setting out to construct the world’s largest innovative infrastructure cluster – with the most comprehensive components and the strongest services – by the end of 2026, according to details of a new three-year plan released on the government’s website on Thursday.

The hi-tech endeavour – including 5G networks and amped-up computing power to cultivate a supercharged digital economy – comes as the central government has been putting the onus on computing power, given that its tech war with the US shows no sign of abating.

And China’s regional powerhouses, including Shanghai, are uniquely positioned to take the lead.

“Accelerating the construction of new infrastructure is an important means to expand effective investment and seize new opportunities in the digital economy,” Gu Jun, director of the Shanghai Municipal Development and Reform Commission, said in an official statement. “It is also a key starting point to promote digital transformation and shape new advantages for future development.”

According to details of the plan posted to the Shanghai government’s website, the city will broaden and upgrade the coverage of 5G mobile services, while establishing advanced infrastructure for computing power, big data and technology innovation, as well as an effective smart city network – from traffic control to medical facilities.

To attract capital to fund what is expected to be a 220-billion-yuan (US$30 billion) undertaking, local authorities will offer investment opportunities to the private sector, Gu said, noting that the list includes about 100 projects that should raise about 120 billion yuan.