(Yicai) Aug. 31 -- Shares of Asiacom Information Technology surged after the Chinese provider  of computing power infrastructure integrated services said it plans to build an artificial intelligence computing center.

After soaring by as much as 13.8 percent at one point in Shenzhen today, Asiacom [SHE: 301085] closed up 5.1 percent at CNY73.87 (USD10.13) a share.

Located in Qingyang in China's green energy rich northwestern Gansu province, the AI computing center will have an initial scale of 1,000 graphics processing units, enough to meet the training needs of most large generative AI models on the market, the Beijing-based firm said yesterday, adding that it will be completed by the end of the year.

Asiacom will also set up a joint venture with a Qingyang government-owned enterprise that will be responsible for the investment, construction, and operation of the AI computing center, it said. Asiacom will invest CNY153 million for 51 percent of the JV.

Asiacom did not disclose the project’s total estimated investment or earnings targets.

The JV will also build local support projects such as for AI technology innovation, AI-enabled application scenario development, as well as the coordinated development of other industries, to help the city form AI industry clusters and attract more clients for its AI computing center, Asiacom said.

Qingyang is a node city of China's Eastern Data and Western Computing project, which is building an interconnected national computing power network to guide demand in the east of the country, which is relatively short of power supply, to the western region, where green energy resources are abundant.

Editor: Futura Costaglione