1. Introduction to the Project

1.1 Project background

1.1.1 Product introduction

The computing power center is a new type of public infrastructure in the intelligent era that targets multiple entities across the entire society. It has core capabilities such as high-performance computing, large-scale storage, and high-speed networks, and aims to provide large-scale, high-efficiency, and low-cost computing services.

The computing power center will adopt advanced cloud computing technology to ensure flexible allocation and efficient utilization of resources. By building a multi-level and multi-dimensional computing power service model, it can meet the computing needs of different industries and fields. In addition, the center will be equipped with a professional operation and maintenance team to ensure the stable operation of the system and data security. It is expected that the production scale of the product after completion will be 100P for intelligent computing and 10P for supercomputing, which will significantly enhance the data processing capabilities in the region and promote the digital transformation of multiple industries such as scientific research, education, and healthcare.

1.1.2 Market prospect

(1) The current situation of the computing power center industry

On September 4, 2024, the Ministry of Industry and Information Technology and ten other departments jointly issued the Notice on Promoting the Coordinated Development of New Information Infrastructure, aiming to promote the coordinated development of new infrastructure such as computing power centers among regions, networks, and industries. As a key infrastructure of the digital economy, computing power centers play a crucial supporting role in accelerating digital transformation, cultivating emerging industries, and forming new economic growth drivers.

Computing power, as a new type of productivity, integrates information processing capability, network transmission capability, and data storage capability. It mainly provides services to various sectors of society through infrastructure such as computing power centers. According to the type of equipment and computing power provided, computing centers can be divided into three categories: general computing centers, intelligent computing centers, and supercomputing centers.

Universal computing power centers: They are mainly provided by servers based on CPU chips, capable of meeting the computing needs of most enterprises and individuals. They are typically used for basic general computing tasks such as mobile computing, the Internet of Things, etc. The investment and construction subjects of such centers are usually Internet companies, telecom operators and other enterprises.

Intelligent computing centers: Based on the theory of artificial intelligence, they adopt a specialized artificial intelligence computing architecture to provide necessary computing power services, data services, and algorithm services. These types of centers are usually powered by accelerated computing platforms based on AI chips such as GPUs, FPGAs, ASICs, etc., mainly used for training and inference calculations of artificial intelligence. The construction of intelligent computing centers is mostly jointly invested by A company, government, and enterprises.

Supercomputing centers: Based on supercomputers or large-scale computing clusters, they provide large-scale computing, storage, and network services. They have been widely used in various fields such as aerospace, national defense, oil exploration, climate modeling, and genome sequencing. The main investment and construction entities of the supercomputing center are the government and research institutions.

A computing power center is a highly integrated, large-scale centralized computing and data processing facility, consisting of thousands of servers, massive storage devices, complex network equipment, and a series of supporting infrastructure. They can provide users with powerful computing power, massive data storage, and efficient data processing services at astonishing speed and efficiency. The computing power center has become an indispensable key infrastructure in the operation of modern society, playing a crucial role in promoting digital transformation, cultivating emerging industries, and forming new economic growth drivers.

(2) The prospects of the computing power center industry

Thanks to the dual drive of policy support and market demand, the construction and growth of computing power centers have shown a strong momentum. For example, many provinces and cities have incorporated the construction of computing power centers into their local development plans, attracting enterprises to invest in the construction of computing power centers by providing incentives such as land and tax incentives.

With the rapid development of new generation information technologies such as 5G, IoT, and cloud computing, the importance of computing power centers in processing large-scale datasets and executing complex computing tasks is becoming increasingly prominent. Looking ahead, the computing center will integrate with cutting-edge technologies such as edge computing and quantum computing to provide more efficient and intelligent computing services for all walks of life.

Driven by the computing power center, the artificial intelligence technology is gradually penetrating into various fields of social life. Taking healthcare for example, the computing power center can process massive medical datasets, assist doctors in disease diagnosis and treatment plan formulation, and significantly improve the efficiency and accuracy of medical services.

In the field of education, the application of computing power centers also demonstrates enormous potential. With the powerful data processing capabilities of the computing power center, personalized teaching and intelligent evaluation can be achieved, providing students with customized learning plans and helping educational institutions optimize the allocation of teaching resources.

With the continuous maturity and in-depth expansion of computing power center technology, it will also play a key role in maintaining national security and enhancing social governance capabilities. For example, in the field of public safety, computing power centers can support real-time analysis of large-scale video surveillance data, effectively preventing and combating criminal behavior.

The Guidelines for Innovation and Development of Intelligent Computing Centers released by the National Information Center point out that during the 14th Five-Year Plan, if the intelligent computing centers achieve an application level of 80%, urban investment in intelligent computing centers will drive the growth of core artificial intelligence industries by 2.9 to 3.4 times and related industries by 36 to 42 times.

With the continuous advancement of technology and the expansion of applications, computing power centers have become the core force driving the development of the digital economy. According to relevant research predictions, by 2025, the global computing power market size will have reached approximately 300 billion US dollars, with the growth rate of China’s market expected to exceed the global average.

At the International Symposium on Computing Standards and Applications 2024, it was revealed that China’s computing power scale has reached 8.3 million standard racks, ranking second in the world. Currently, there are over 13000 innovative cases of computing power applications, widely covering many production and life fields such as industry, finance, and transportation.

1.1.3 Technical analysis

(1) Computing architecture: Adopting advanced cloud computing technology to achieve rapid improvement in large-scale data processing capabilities. At the same time, advanced technologies such as distributed computing and edge computing can be used to further improve the efficiency of data processing.

(2) Storage technology: Select high-performance and highly reliable storage devices to ensure the secure storage of data. In addition, technologies such as distributed storage and redundant storage can be used to improve data security and reliability.

(3) Network technology: Use the high-speed and stable network infrastructure to achieve rapid transmission of data between different regions. Meanwhile, technologies such as distributed networks and virtual private networks (VPNs) can be adopted to further improve data processing efficiency.

1.1.4 Advantageous conditions of project construction

(1) Policy advantages

The 14th Five-Year Plan for the Development of Digital Economy points out that by 2025, the added value of core industries in the digital economy will have accounted for 10% of the gross domestic product, the data factor market system will have been initially established, the digital transformation of industries will have reached a new level, the level of digital industrialization will have been significantly improved, digital public services will have been more universal and equal, and the digital economy governance system will have been more perfect. Looking ahead to 2035, we aim to establish a unified, fair, competitive, mature, and complete modern market system for the digital economy, with the development level of the digital economy ranking among the top in the world.

Jilin Province has issued the Implementation Plan for Accelerating the High-quality Development of Jilin Province’s Digital Economy (2023-2025), which takes the digital government as the guide and digital technology innovation as the driving force to promote the integrated development of digital technology and the real economy. The plan proposes goals such as improving the level of digital industrialization, promoting industrial digital transformation, and strengthening basic support capabilities, aiming to create a new growth pole for the digital economy and provide strong support for the high-quality development of Jilin.

The Notice on the Measures to Promote the Accelerated Development of Jilin Province's New Energy Industry (JZBF [2024] No. 1) issued by the General Office of the People’s Government of Jilin Province points out that we will vigorously develop the “dual-force integration” industry of computing power and green power. Support the adoption of the “green electricity+consumption” development model and promote the construction of “dual-force integration” projects. Encourage each city (prefecture) government to formulate relevant support policies based on their own actual situation.

Songyuan Municipal Government attaches great importance to technological innovation and industrial development, and has introduced a series of policy measures to promote technological innovation and industrial upgrading. The Science and Technology Empowerment Industry Development Plan of Songyuan City clearly proposes to promote industrial innovation through technological innovation, build a comprehensive and full chain science and technology innovation ecosystem, and provide strong policy guarantees for the development of computing power centers.

(2) Industrial advantages

Abundant renewable energy resources: Songyuan has abundant wind and solar energy resources, which provide stable power supply for the computing center. Songyuan actively builds a “green power” park, promotes wind and solar power generation projects, and provides green and sustainable energy support for computing centers.

A sound industrial foundation: Songyuan has significant advantages in the manufacturing of new energy equipment, forming a full industry chain of “green electricity+green hydrogen+green chemical+equipment manufacturing”. As of the end of August 2024, the number of new energy power generation enterprises in Songyuan City has increased to 37, and the number of large-scale equipment manufacturing enterprises has reached 10, providing a solid industrial foundation for the construction of computing power centers.

(3) Location advantages

Songyuan City is located in the central and western part of Jilin Province, with Changchun City to the east, Siping City to the south, Tongliao City in Inner Mongolia Autonomous Region to the southwest, Baicheng City to the northwest, Daqing City in Heilongjiang Province to the north, and Harbin City, Heilongjiang Province to the northeast. Located in the triangle area of Harbin, Changchun, and Daqing, the core area of the Harbin-Changchun urban agglomeration, it is an important transportation hub and logistic distribution center in Northeast China. Along with Baotou, Hohhot, and Ordos, it is known as the “Four Little Dragons of Economic Growth in Northern China”.

There are six national and provincial highways passing through Songyuan City, including Beijing-Harbin, Tumen-Ulanhot, Baicheng-Changchun, Shenyang-Mingshui, Kaitong-Fangzheng, and Changchun-Harbin. City-level, county-level, township-level, and village-level highways are connected to national and provincial trunk highways, forming a touring network.

Songyuan Chaganhu Airport is located in Chaganhu Village, Waiqi Ranch, Baodian Township, Chaganhu Tourism Economic Development Zone, Qianguo’erluosi Mongolian Autonomous County, Songyuan City, Jilin Province, China. It is 36 kilometers northeast of the center of Songyuan City, 35 kilometers away from Qianguo’erluosi Mongolian Autonomous County, and 60 kilometers west of Qian’an County. It is a 4C level domestic tourism branch airport in China.

Songyuan City has unique water transportation conditions. There are 8 large and small docks along the Songhua River, with a total berth of over 4000 tons. Along the Songhua River, one can travel upstream to Jilin City, downstream to Harbin City, enter Heilongjiang Province directly to Boli Port, Russia, and travel along the Nenjiang River to Qiqihar City and also to border ports.

(4) Talent advantages

Songyuan City has established 11 industrial colleges, research internship and training bases, and doctoral workstations to support rural revitalization with 7 provincial universities including Jilin University and Jilin University of Finance and Economics. These collaborations have attracted a large number of high-level talents and college graduates to come to Songyuan for scientific research, study, work, and life. They have established a “Talent Home · Special Program for Projects” and connected 126 industrial projects and 83 talent projects. Through the integration platform of industry and talent, they have attracted a large number of high-level talents to provide sufficient talent support for the project. ‌‌

1.2 Contents and scale of project construction

The planned land area for the project is 32000 square meters, with a total construction area of 39000 square meters. The main construction includes 4 computing power centers, 1 technology center, 1 innovation and research center, 1 information service center, 1 ancillary building, supporting road hardening, greening, pipeline network and other ancillary projects, as well as the purchase of related equipment and other ancillary facilities.

After the project is completed, the production scale of the product will be 100P for intelligent computing and 10P for supercomputing.

1.3. Total investment of the project and capital raising

The total investment of the project is 1.95 billion yuan, including the construction investment of 1.7 billion yuan.

1.4 Financial analysis and social evaluation

1.4.1 Main financial indexes

After the project reaches the production capacity, its annual sales revenue will be 1.08333 billion yuan, its profit will be 325 million yuan, its investment payback period will be 7 years (after the tax, including the construction period of 1 year) and its investment profit rate will be 16.6%.

1.4.2 Social evaluation

Promoting economic growth: Computing power is one of the core driving forces of the digital economy, which can promote digital transformation and innovative development in various industries. Powerful computing power supports the application of emerging technologies such as artificial intelligence, big data, and the Internet of Things, improving production efficiency, optimizing resource allocation, and promoting urban economic growth.

Enhancing urban competitiveness: In the digital age, the competitiveness of cities increasingly depends on their level of digitization and innovation capabilities. Having advanced computing infrastructure can attract more technology companies and innovative talents to settle in, promote industrial upgrading and innovative development, and enhance the competitiveness of cities in the region and globally.

Cultivating emerging industries: The development of computing power drives the rise of related industries such as data centers, cloud computing, and artificial intelligence. These emerging industries not only bring new economic growth points to cities, but also promote the optimization and upgrading of employment and industrial structure.

Promoting technological innovation: The intelligent computing center is of great significance in promoting technological innovation. They provide powerful computing power, accelerating the iterative optimization of machine learning and artificial intelligence algorithms. By integrating advanced algorithms and tools, the intelligent computing center significantly improves research and development efficiency, promoting rapid innovation among enterprises and developers.

Promoting economic development: The development of the intelligent computing industry significantly promotes economic growth through high-quality computing infrastructure construction, cluster development, and technological innovation. The centralized construction of large-scale intelligent computing centers can reduce costs, improve efficiency, and promote industrial agglomeration.

1.5 Cooperative way

Sole proprietorship, joint venture or cooperation

1.6 What to be invested by the foreign party

Funds, and other methods can be discussed in person.

1.7 Construction site of the project

Songyuan Economic and Technological Development

1.8 Progress of the project

The project proposal has been prepared.

2. Introduction to the Partner

2.1 Unit basic information

Name: Songyuan Economic and Technological Development

Address: 139 Jianye Road, Songyuan City

2.2 Unit overview

Songyuan Economic and Technological Development Zone was established in 1993 and is located in Songyuan City, Jilin Province. It covers an area of 118 square kilometers with a planned area of 53.5 square kilometers. The development zone was promoted to a national level economic and technological development zone in March, 2013, with jurisdiction over Xingyuan Industrial Park, Zhongmei Cargill Biochemical New and High-tech Industrial Park, Liangjiang New and High-tech Industrial Incubation Park, Xingyuan Township, and 13 administrative villages.

Historical background and geographical location:

Songyuan Economic and Technological Development Zone is located in the eastern part of the Songnen Plain, on the beautiful south bank of the Songhua River, and is a prime location in the urban area of Songyuan City. Relying on four railways, five national and provincial highways, and the Songhua River Bridge, Songyuan City has become an important transportation hub and logistics center connecting the three northeastern provinces and Inner Mongolia Autonomous Region.

Economic development and industrial structure:

As of 2023, the regional GDP of Songyuan Economic and Technological Development Zone reached 3.3 billion yuan, a year-on-year increase of 6.8%; fixed assets investment reached 2.56 billion yuan, up 16.8% year on year; the total fiscal revenue reached 1.067 billion yuan; the total output value of industrial enterprises above designated size reached 4.23 billion yuan, a year-on-year increase of 13.8%; the added value of the tertiary industry reached 1.35 billion yuan, a year-on-year increase of 8%. The development zone has formed a diversified economic structure dominated by pillar industries such as biochemistry, food processing, mechanical processing, and natural gas processing and transformation.

Infrastructure and investment environment:

Songyuan Economic and Technological Development Zone has unique natural resources, including oil, natural gas, food, and water resources. Relying on these resources, the development zone actively expands its investment areas, forming five characteristic pillar industries including food processing, machinery manufacturing, biochemistry, commercial logistics, and biopharmaceuticals. In addition, the development zone also has a beautiful ecological environment and a first-class service system, attracting numerous domestic and foreign investors to invest and develop.

Future development plan:

In the future, Songyuan Economic and Technological Development Zone will continue to implement the strategy of innovation leading and opening up to rise, aiming for opportunities, seizing opportunities, positioning accurately, further innovating institutional mechanisms, improving service capabilities, optimizing the development environment, and striving to build the Economic and Technological Development Zone into an important carrier for driving regional economic development.

‌2.3 Contact method

Contact person: Songyuan Economic and Technological Development

Investment promotion hotline: +86-438-2162288

Contact method of the city (prefecture) where the project is located:

Contact unit: Investment Promotion Service Center of Songyuan Municipal Bureau of Commerce

Contact person: Yu Lili

Tel: +86-18004388787