Data Centers in China: Borderstep on Location Factors

A recent article by Table.Briefings examines why the expansion of data centers in western China is running into difficulties. As part of its research, the editorial team spoke with Dr. Ralph Hintemann of the Borderstep Institute about data center location factors, latency, and current bottlenecks in building new capacity.

Not All Computing Workloads Are Location-Independent

Dr. Ralph Hintemann explained that location requirements depend strongly on the type of workload. For AI training or simulation tasks, proximity to users is often less important. This is different for applications in which milliseconds matter. In such cases, latency becomes a key factor in choosing a data center location.

Long Lead Times Are Slowing the Expansion of New Capacity

The background discussion also covered bottlenecks in the technical infrastructure required for new data centers. Hintemann pointed to long lead times for key components such as transformers, switchgear, backup generators, and cooling systems. At the same time, increasingly powerful AI chips are placing greater demands on cooling infrastructure.

The article Data centers: China’s bet on its western regions is not paying off was published by Table.Briefings. The full article is available there behind a paywall.

About Dr. Ralph Hintemann

Dr. Ralph Hintemann is a partner and senior researcher at the Borderstep Institute for Innovation and Sustainability. With a background in engineering and economics, his research focuses on the megatrends of digitalisation and sustainability. Ralph Hintemann is an internationally recognized expert on the sustainability of digital infrastructures, particularly data centers. At a time of profound transformation, he provides scientifically grounded insights and practical recommendations through his interdisciplinary perspective.