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China plans network to sell surplus computing power in crackdown on data centre glut

Yahoo

7 hours ago

Yahoo

China plans network to sell surplus computing power in crackdown on data centre glut

(Reuters) -China is taking steps to build a network to sell computing power and curb the unwieldy growth of data centres after thousands of local government-backed centres that sprouted in the country caused a capacity glut and threatened their viability. The state planner is conducting a nationwide assessment of the sector after a three-year data centre building boom, according to two sources familiar with the matter and a document seen by Reuters. Beijing is also seeking to set up a national, state-run cloud service for harnessing surplus computing power, according to Chinese government policy advisers. The Ministry of Industry and Information Technology (MIIT) is collaborating with China's three state telecoms companies on ways to connect the data centres in a network to create a platform that can sell the computing power, they said. Computing power is a crucial element in the race for technological supremacy between China and the U.S. Besides being an embarrassment for Beijing, unused computing power and financially shaky data centres could hinder China's ambitions in the development of artificial intelligence capabilities. "Everything will be handed over to our cloud to perform unified organisation, orchestration, and scheduling capabilities," Chen Yili, deputy chief engineer at the China Academy of Information and Communications Technology, a think tank affiliated to the industry ministry, told an industry conference in Beijing last month. Chen did not specify details of the cloud service proposal, but his presentation materials showed China was targeting standardised interconnection of public computing power nationwide by 2028, even as some analysts were skeptical about the plan given the technological challenges it posed. China Mobile, China Unicom and China Telecom, the state-run telecoms companies, and MIIT did not respond to requests for comment. The sources did not want to be identified because of the sensitivities of the issue. NATIONWIDE NETWORK China's data centre building boom kickstarted in 2022 after Beijing launched an ambitious infrastructure project called "Eastern Data, Western Computing", aimed at coordinating data centre construction by concentrating facilities in western regions - where energy costs are cheaper - to meet demand from the eastern economic hubs. Chen said at the June event that the industry ministry has so far licensed at least 7,000 computing centres. A Reuters review of government procurement documents for data centres used in computing shows a surge last year in state investment, totalling 24.7 billion yuan ($3.4 billion), compared to over 2.4 billion yuan in 2023. This year, already 12.4 billion yuan has been invested in these centres, most of it in the far-west region of Xinjiang. But while only 11 such data centre-related projects were cancelled in 2023, over 100 cancellations occurred over the past 18 months, pointing to growing concerns among local governments about returns on their investments. And utilisation rates are estimated to be low, with four sources putting them at around 20%-30%. Driven by expectations that government and state-owned firms will act as buyers, investors and local governments tend to build without considering real market needs, said a project manager who works for a server company that provides products for such data centers. "The idea of building data centers in remote western provinces lacks economic justification in the first place," said Charlie Chai, an analyst with 86Research, adding lower operating costs had to be viewed against degradation in performance and accessibility. To regulate the sector's growth, China's state planner National Development and Reform Commission (NDRC) initiated a nationwide assessment earlier this year that has already tightened scrutiny of new data center projects planned after March 20, and banned local governments from participating in small-sized computing infrastructure projects. The NDRC aims to prevent resource wastage by setting specific thresholds - such as requiring a computing power purchase agreement and a minimum utilisation ratio - to filter out unqualified projects, according to a person familiar with the matter, who did not provide details on the thresholds. NDRC did not respond to a request for comment. CHALLENGES Industry sources and Chinese policy advisers said the formation of a computing power network will not be easy, given that the technology for data centers to efficiently transfer the power to users in real-time remains underdeveloped. When the Chinese government rolled out the Eastern Data, Western Computing project, it targeted a maximum latency of 20 milliseconds by 2025, a threshold necessary for real-time applications such as high-frequency trading and financial services. However, many facilities, especially those built in the remote western regions, still have not achieved this standard, the project manager said. Many of the centres also use different chips from Nvidia and local alternatives such as Huawei's Ascend chips, making it difficult to integrate various AI chips with different hardware and software architectures to create a unified cloud service. Chen, however, was optimistic, describing a vision of the cloud bridging the differences in underlying computing power and the physical infrastructure. "Users do not need to worry about what chips are at the bottom layer; they just need to specify their requirements, such as the amount of computing power and network capacity needed," he said. ($1 = 7.1715 Chinese yuan renminbi)

Yahoo

7 hours ago

Yahoo

China plans network to sell surplus computing power in crackdown on data centre glut

(Reuters) -China is taking steps to build a network to sell computing power and curb the unwieldy growth of data centres after thousands of local government-backed centres that sprouted in the country caused a capacity glut and threatened their viability. The state planner is conducting a nationwide assessment of the sector after a three-year data centre building boom, according to two sources familiar with the matter and a document seen by Reuters. Beijing is also seeking to set up a national, state-run cloud service for harnessing surplus computing power, according to Chinese government policy advisers. The Ministry of Industry and Information Technology (MIIT) is collaborating with China's three state telecoms companies on ways to connect the data centres in a network to create a platform that can sell the computing power, they said. Computing power is a crucial element in the race for technological supremacy between China and the U.S. Besides being an embarrassment for Beijing, unused computing power and financially shaky data centres could hinder China's ambitions in the development of artificial intelligence capabilities. "Everything will be handed over to our cloud to perform unified organisation, orchestration, and scheduling capabilities," Chen Yili, deputy chief engineer at the China Academy of Information and Communications Technology, a think tank affiliated to the industry ministry, told an industry conference in Beijing last month. Chen did not specify details of the cloud service proposal, but his presentation materials showed China was targeting standardised interconnection of public computing power nationwide by 2028, even as some analysts were skeptical about the plan given the technological challenges it posed. China Mobile, China Unicom and China Telecom, the state-run telecoms companies, and MIIT did not respond to requests for comment. The sources did not want to be identified because of the sensitivities of the issue. NATIONWIDE NETWORK China's data centre building boom kickstarted in 2022 after Beijing launched an ambitious infrastructure project called "Eastern Data, Western Computing", aimed at coordinating data centre construction by concentrating facilities in western regions - where energy costs are cheaper - to meet demand from the eastern economic hubs. Chen said at the June event that the industry ministry has so far licensed at least 7,000 computing centres. A Reuters review of government procurement documents for data centres used in computing shows a surge last year in state investment, totalling 24.7 billion yuan ($3.4 billion), compared to over 2.4 billion yuan in 2023. This year, already 12.4 billion yuan has been invested in these centres, most of it in the far-west region of Xinjiang. But while only 11 such data centre-related projects were cancelled in 2023, over 100 cancellations occurred over the past 18 months, pointing to growing concerns among local governments about returns on their investments. And utilisation rates are estimated to be low, with four sources putting them at around 20%-30%. Driven by expectations that government and state-owned firms will act as buyers, investors and local governments tend to build without considering real market needs, said a project manager who works for a server company that provides products for such data centers. "The idea of building data centers in remote western provinces lacks economic justification in the first place," said Charlie Chai, an analyst with 86Research, adding lower operating costs had to be viewed against degradation in performance and accessibility. To regulate the sector's growth, China's state planner National Development and Reform Commission (NDRC) initiated a nationwide assessment earlier this year that has already tightened scrutiny of new data center projects planned after March 20, and banned local governments from participating in small-sized computing infrastructure projects. The NDRC aims to prevent resource wastage by setting specific thresholds - such as requiring a computing power purchase agreement and a minimum utilisation ratio - to filter out unqualified projects, according to a person familiar with the matter, who did not provide details on the thresholds. NDRC did not respond to a request for comment. CHALLENGES Industry sources and Chinese policy advisers said the formation of a computing power network will not be easy, given that the technology for data centers to efficiently transfer the power to users in real-time remains underdeveloped. When the Chinese government rolled out the Eastern Data, Western Computing project, it targeted a maximum latency of 20 milliseconds by 2025, a threshold necessary for real-time applications such as high-frequency trading and financial services. However, many facilities, especially those built in the remote western regions, still have not achieved this standard, the project manager said. Many of the centres also use different chips from Nvidia and local alternatives such as Huawei's Ascend chips, making it difficult to integrate various AI chips with different hardware and software architectures to create a unified cloud service. Chen, however, was optimistic, describing a vision of the cloud bridging the differences in underlying computing power and the physical infrastructure. "Users do not need to worry about what chips are at the bottom layer; they just need to specify their requirements, such as the amount of computing power and network capacity needed," he said. 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Lexaria's DehydraTECH Technology Has the Potential to Unlock Accelerated Revenue Growth in the GLP-1-Industry

Associated Press

a day ago

Associated Press

Lexaria's DehydraTECH Technology Has the Potential to Unlock Accelerated Revenue Growth in the GLP-1-Industry

KELOWNA, BC / ACCESS Newswire / July 23, 2025 / Lexaria Bioscience Corp. (Nasdaq:LEXX)(Nasdaq:LEXXW) (the 'Company' or 'Lexaria'), a global innovator in drug delivery platforms, provides the following glucagon-like peptide-1 ('GLP-1") strategic update as the industry continues to outperform earlier revenue growth projections. Global pharmaceutical corporations are competing desperately to secure either a foothold, or dominance, in what is currently the fastest growing pharmaceutical sector in the world: GLP-1 weight loss and diabetes control. Lexaria previously reported, on November 7, 2024, that growth expectations for the GLP-1 industry supported revenues in excess of $100 billion per year. As time has passed, this projection now seems out-of-date and overly conservative. The latest projections are that the GLP-1 industry will be generating over $156 billion in revenue as soon as 2030. Having generated $53.5 billion in 2024 , stunning growth of 31% is expected in a single year, and projected revenues in 2025 are now expected to reach $70.1 billion. That represents an additional $1.38 billion in revenue per month in 2025 vs. 2024. Despite remarkable revenue growth, however, there is a significant problem still plaguing the GLP-1 industry: unwanted adverse effects ('AEs') led by gastrointestinal issues, namely nausea, vomiting, diarrhea and constipation. One study showed that between 47% and 64% of GLP-1 users with type 2 diabetes discontinued use of their GLP-1 drug within 1 or 2 years, respectively with gastrointestinal AEs having been cited as the main cause linked to the discontinuation rates. If roughly half of the patients using GLP-1 drugs discontinue use, the industry is faced with potential loss of tens of billions of revenue dollars per year. For example, the leading GLP-1 brand in 2024 was Ozempic with 34% market share, which uses the drug semaglutide. Amalgamating AE data from four recent Novo Nordisk® ('Novo') GLP-1 studies that examined semaglutide and CagriSema, ( Oasis 4; Step Up; Redefine1; Redefine 2 ) across a total of 4,218 persons, Novo reported that 75.7% of people experienced gastrointestinal AEs. 'We want to win the weight loss but we also want to have a gastrointestinal adverse event profile that is attractive and competitive,' said Martin Holst Lange, EVP, Head of Development, Novo, at the Novo Nordisk R&D Investor Event hosted June 22, 2025 from the American Diabetes Association's (ADA's) 85th Scientific Sessions held in Chicago, Il. Clearly, reductions in AEs within the GLP-1 industry are highly sought after and could lead to higher patient satisfaction, lower patient dropout rates, and higher industry revenues. Fortunately, Lexaria's patented DehydraTECH technology offers a solution. By enhancing the performance of oral dosing choices as a replacement for disliked injections, and by reducing AEs and especially gastrointestinal AEs, Lexaria's proprietary DehydraTECH technology could be of vital importance to the GLP-1 sector in the pursuit of better tolerated GLP-1 drugs. As Lexaria has previously reported on August 28, 2024, January 14, 2025, and June 11, 2025, DehydraTECH-GLP-1 processing has repeatedly shown in human clinical testing its propensity to reduce side effects, including but not limited to gastrointestinal AEs, in all 3 of the top GLP-1 drugs currently available in the world today, being Eli Lilly and Company's® drug tirzepatide, and Novo's drugs semaglutide and liraglutide. Lexaria is executing its multi-faceted strategy centered around its proprietary DehydraTECH processing technology. Our main goal is to attract pharmaceutical companies seeking the benefits of adopting Lexaria's DehydraTECH technology for use with their own existing drug products. This first prong of our strategy has been evidenced and validated by the Company's entry in a material transfer agreement with a pharmaceutical company ('PharmaCO') which was announced in September of 2024. Lexaria continues to collaborate with PharmaCO on evaluating DehydraTECH compositions and potential next steps. About Lexaria Bioscience Corp. & DehydraTECH DehydraTECH™ is Lexaria's patented drug delivery formulation and processing platform technology which improves the way a wide variety of drugs enter the bloodstream, always through oral delivery. DehydraTECH has repeatedly evidenced the ability to increase bio-absorption, reduce side-effects, and deliver some drugs more effectively across the blood brain barrier. Lexaria operates a licensed in-house research laboratory and holds a robust intellectual property portfolio with 50 patents granted and additional patents pending worldwide. For more information, please visit CAUTION REGARDING FORWARD-LOOKING STATEMENTS This press release includes forward-looking statements. Statements as such term is defined under applicable securities laws. These statements may be identified by words such as 'anticipate,' 'if,' 'believe,' 'plan,' 'estimate,' 'expect,' 'intend,' 'may,' 'could,' 'should,' 'will,' and other similar expressions. Such forward-looking statements in this press release include, but are not limited to, statements by the Company relating to the Company's ability to carry out research initiatives, receive regulatory approvals or grants or experience positive effects or results from any research or study. Such forward-looking statements are estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that the Company will actually achieve the plans, intentions, or expectations disclosed in these forward-looking statements. As such, you should not place undue reliance on these forward-looking statements. Factors which could cause actual results to differ materially from those estimated by the Company include, but are not limited to, government regulation and regulatory approvals, managing and maintaining growth, the effect of adverse publicity, litigation, competition, scientific discovery, the patent application and approval process, potential adverse effects arising from the testing or use of products utilizing the DehydraTECH technology, the Company's ability to maintain existing collaborations and realize the benefits thereof, delays or cancellations of planned R&D that could occur related to pandemics or for other reasons, and other factors which may be identified from time to time in the Company's public announcements and periodic filings with the US Securities and Exchange Commission on EDGAR. The Company provides links to third-party websites only as a courtesy to readers and disclaims any responsibility for the thoroughness, accuracy or timeliness of information at third-party websites. There is no assurance that any of Lexaria's postulated uses, benefits, or advantages for the patented and patent-pending technology will in fact be realized in any manner or in any part. No statement herein has been evaluated by the Food and Drug Administration (FDA). Lexaria-associated products are not intended to diagnose, treat, cure or prevent any disease. Any forward-looking statements contained in this release speak only as of the date hereof, and the Company expressly disclaims any obligation to update any forward-looking statements or links to third-party websites contained herein, whether as a result of any new information, future events, changed circumstances or otherwise, except as otherwise required by law. INVESTOR CONTACT: George Jurcic - Head of Investor Relations [email protected] Phone: 250-765-6424, ext 202 SOURCE: Lexaria Bioscience Corp. press release

Analysts Offer Insights on Healthcare Companies: NextCure (NXTC), Lexaria Bioscience (LEXX) and Travere Therapeutics (TVTX)

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China plans network to sell surplus computing power in crackdown on data centre glut

China plans network to sell surplus computing power in crackdown on data centre glut

Lexaria's DehydraTECH Technology Has the Potential to Unlock Accelerated Revenue Growth in the GLP-1-Industry

Analysts Offer Insights on Healthcare Companies: NextCure (NXTC), Lexaria Bioscience (LEXX) and Travere Therapeutics (TVTX)

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China plans network to sell surplus computing power in crackdown on data centre glut

China plans network to sell surplus computing power in crackdown on data centre glut

Lexaria's DehydraTECH Technology Has the Potential to Unlock Accelerated Revenue Growth in the GLP-1-Industry

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