Wuxi's New AI 'Token Factory' to Power China's Surge in Computing Demand
Wuxi is set to become a major hub for artificial intelligence computing in China. A new large-scale 'token factory' will open there, backed by Huawei’s advanced supernode technology. The project aims to meet soaring demand for AI infrastructure as token usage surges across the country.
The initiative follows a national push to expand computing networks, with Jiangsu province leading efforts to support its thriving AI industry. The foundation for the project was laid when Honflex and the Wuxi High-tech Zone jointly built the first Huawei Ascend 384 supernode computing cluster in Jiangsu. This cluster now serves as the backbone for the upcoming 'token factory', which will initially deploy four of these high-performance servers. Once operational, it will rank as China’s largest market-facing facility of its kind.
By the end of 2025, Wuxi’s Qingyang data centre cluster had already reached an intelligent computing capacity of 114,000 petaflops. This made it the country’s fastest-growing hub, with the highest share of AI-focused computing power. The new infrastructure will further centralise high-performance resources, improving the efficiency and stability of training and deploying large-language models.
The move aligns with broader national priorities. A State Council executive meeting had previously stressed the need to develop computing power networks, alongside modern power grids and next-generation communication systems. Meanwhile, demand continues to climb—by late March 2026, China’s daily token calls had exceeded 140 trillion, a thousandfold increase since early 2024.
Beyond Wuxi, other regions are also scaling up. China Mobile has established a core computing hub in Hubei Province, equipped with domestically built AI infrastructure. Its intelligent computing capacity now surpasses 2,200 petaflops, supporting applications like industrial internet systems and digital twins. The Wuxi project will strengthen Jiangsu’s position as a key player in China’s AI sector. With its expanded computing power, the region can better serve industries relying on large-language models and advanced digital tools. The facility’s launch comes as token-based AI services see unprecedented growth nationwide.
