Enhanced incentives target tech giants including ByteDance, Alibaba and Tencent to reduce dependence on US suppliers.
China has ramped up subsidies that reduce electricity bills by up to 50 per cent for its leading data centres, in a significant push to promote domestic semiconductor usage and reduce the country’s dependence on US suppliers like Nvidia, according to the Financial Times.
The enhanced incentives by local governments target tech giants including ByteDance, Alibaba, and Tencent—companies that have faced rising electricity costs following Beijing’s ban on the purchase of Nvidia’s advanced artificial intelligence chips.
The new subsidies are intended to offset the higher operating costs associated with Chinese-made processors from firms such as Huawei and Cambricon, which industry experts say consume 30–50 per cent more power than Nvidia’s most advanced H20 chips.
Provinces with dense data centre clusters—such as Gansu, Guizhou, and Inner Mongolia—have unveiled plans to slash power bills by up to half for large data centres, provided they exclusively use approved Chinese semiconductors. Data centres running foreign chips, including those from Nvidia, are explicitly excluded from these programs, reinforcing China’s drive for self-sufficiency in advanced technology.
Local officials confirmed that aggressive energy subsidies, in some cases large enough to cover a data centre’s entire operating cost for about a year, are now part of fierce interprovincial competition to attract the next wave of AI infrastructure projects.
Industrial power rates in these regions are already about 30 per cent below those in eastern coastal provinces, and the new incentives lower them further to around 0.4 yuan ($5.6 cents) per kilowatt-hour. By comparison, similar electricity in the United States averages roughly 9.1 cents per kWh, with prices varying widely by state due to a fragmented grid.
While Chinese chips still lag behind Nvidia’s in single-chip compute performance, industry leaders such as Huawei have adopted clustering strategies to bridge the gap. This approach increases total power consumption but enables tech companies to keep pace with surging demand for AI applications.
Despite higher energy needs, China’s more centralised and resource-rich grid offers both cheaper and greener electricity than the US, ensuring no imminent supply shortages for rapidly scaling data centre operations. Mega-project incentives underscore the country’s determination to accelerate semiconductor self-reliance and compete head-to-head with the US in the global race for AI supremacy.
Company has already accumulated the equivalent of 21,500 Nvidia A100 GPUs in the UAE, using a mix of A100, H100, and H200 chips.
Microsoft announced plans to ramp up its total investment in the United Arab Emirates (UAE) to a remarkable $15 billion by the end of 2029, with a significant portion dedicated to the expansion of AI data centres across the country.
The tech giant has also secured approval from the US Trump administration to export Nvidia’s advanced chips for use in its UAE-based facilities, a senior Microsoft executive told Reuters.
“The biggest share of [the investment], by far, both looking back and looking forward, is the expansion of AI data centres across the UAE,” Microsoft Vice Chair and President Brad Smith stated at the ADIPEC energy conference in Abu Dhabi.
“From our perspective, it’s an investment that is critical to meet the demand here for the use of AI.”
The UAE has been aggressively investing to position itself as a global artificial intelligence powerhouse, leveraging strong diplomatic relations with Washington to secure access to US technology, including state-of-the-art AI processors. Microsoft’s latest initiative underscores the country’s ambition and the global competition to supply cloud and AI infrastructure.
However, G42’s historical ties to China prompted concern in US political circles, with lawmakers scrutinising potential risks of advanced US semiconductors reaching Beijing via the UAE.
G42 has since pledged to work closely with American partners and authorities to ensure AI development complies with US regulatory standards, and Smith noted “enormous progress” in meeting these requirements.
Microsoft, under US government licenses approved last year, has already accumulated the equivalent of 21,500 Nvidia A100 GPUs in the UAE, using a mix of A100, H100, and H200 chips. The White House approved additional exports in September, covering chips equivalent to 60,400 Nvidia A100 GPUs, including next-generation GB300 processors.
These chips are expected to ship “in a matter of months,” Smith confirmed, and will be deployed in Microsoft’s own UAE data centres.
To date, Microsoft will have invested $7.3 billion in the UAE from 2023 through 2025, with a further $7.9 billion allocated through 2029 for ongoing AI and cloud infrastructure expansion, according to Smith’s blog post.
Notably, none of the $15.2 billion investment covers “Stargate UAE”— the $10 billion first phase of what will become one of the world’s largest data centre hubs, recently announced during US President Donald Trump’s Gulf visit in May.
Political reaction in Washington remains mixed. US House Select Committee on China Chairman Rep. John Moolenaar welcomed closer UAE-US technology ties, while cautioning that the transfer of advanced technology should be contingent on the UAE “verifiably and irreversibly choosing America” amidst its ongoing relations with China.
Company is reinforcing its position at the forefront in the race to meet surging demand for generative AI applications and advanced cloud services.
Microsoft will rapidly expand its AI infrastructure without the delays and capital expense of constructing new sites or securing additional grid power.
Microsoft has entered into a landmark $9.7 billion agreement with data-centre operator IREN, securing access to Nvidia’s next-generation chips in a bid to overcome the computing shortfall preventing the tech giant from fully capitalising on the artificial intelligence surge.
News of the five-year partnership sent IREN shares soaring as much as 24.7 per cent to a record high on Monday, before closing up nearly 10 per cent. Dell Technologies also saw its stock rise about 1 per cent as it will supply IREN with Nvidia’s cutting-edge GB300 AI processors and related infrastructure, roughly $5.8 billion of which Microsoft is slated to use.
The deal highlights the intensifying scramble for AI computing power—a message echoed in recent earnings reports from top technology players, which noted that capacity constraints were tempering their ability to exploit the current AI boom.
By partnering with IREN, which operates data centres across North America with a combined capacity of 2,910 megawatts, Microsoft will rapidly expand its AI infrastructure without the delays and capital expense of constructing new sites or securing additional grid power.
The move also allows Microsoft to avoid locking up funds in chips that risk obsolescence as newer, more advanced models hit the market.
Competitive AI space
Much of the hardware will be deployed at IREN’s 750-megawatt Childress, Texas campus, where Nvidia processors and new liquid-cooled data centers are scheduled for phased installation through 2026—ultimately providing around 200 megawatts of critical IT capacity.
IREN, now valued at $16.52 billion after its stock price rose more than six fold this year, said funding from Microsoft’ would help finance its $5.8 billion contract with Dell. But the agreement includes a provision that allows Microsoft to walk away if IREN cannot meet strict delivery timelines.
This accelerated investment in so-called “neocloud” providers comes on the heels of Microsoft’s recent $17.4 billion infrastructure deal with Nebius Group, reflecting a broader trend of top tech firms seeking innovative partners—including CoreWeave —to keep pace in the competitive AI space.
Separately, AI infrastructure startup Lambda also announced a multibillion-dollar agreement with Microsoft to roll out Nvidia-powered AI systems, further underscoring the sector’s growing focus on high-performance computing.
Adds 0.95m new postpaid customers in the quarter and brings its total base to 27.5m.
Number of smartphone data users climb by 22.2m over the past year, represent an 8.4% YoY growth.
India’s telecom giant Bharti Airtel posted a stellar 89 per cent year-on-year (YoY) increase in consolidated net profit for the July–September quarter of the current financial year (Q2 FY26), propelled by strong gains in its mobile and data services.
Airtel’s net profit rose to Rs6,791.7 crore, up from Rs3,593.2 crore a year earlier, according to its latest stock exchange filing. The company’s consolidated revenue from operations also saw healthy expansion—up 25.7 per cent YoY to Rs52,145.4 crore, compared with Rs41,473.3 crore in Q2 FY25.
“We delivered another quarter of solid performance, achieving a consolidated revenue of Rs52,145 crore, growing 5.4 per cent sequentially and underscoring the strength of our portfolio,” said Gopal Vittal, Vice-Chairman and Managing Director.
Vittal also highlighted multiple deal wins across connectivity, IoT, and security, citing these as key drivers in the quarter’s growth.
Operationally, Bharti Airtel reported a 36 per cent YoY increase in EBITDA, which stood at Rs29,919 crore. The EBITDA margin improved to 57.4 per cent, reflecting enhanced efficiency and higher average revenue per user (ARPU).
The company continued to consolidate its lead in the postpaid segment, adding 0.95 million new postpaid customers in the quarter and bringing its total base to 27.5 million. The number of smartphone data users climbed by 22.2 million over the past year, representing an 8.4 per cent YoY growth.
Airtel’s ARPU—a key industry metric—grew to Rs256 in Q2 FY26, compared with Rs233 in the same period last year.
Significantly, the company strengthened its balance sheet position, reducing its net debt-to-EBITDA ratio to 1.63 times, down from 2.50 times as of September 30, 2024.
“Our solid balance sheet is a reflection of disciplined capital allocation, continued deleveraging, and sustained operational excellence,” Vittal noted.
Brands and retailers now prioritise value growth over pure shipment volumes as average selling prices rise by 13%.
Apple dominates premium market with a 28% value share and enters into India’s top five smartphone brands by shipment volume for the first time.
Vivo (excluding iQOO) emerges as the leading smartphone brand by volume.
India’s smartphone market posted its highest-ever quarterly value in the July–September period, surging 18 per cent year-on-year (YoY) by value and 5 per cent by volume, according to the latest report from Counterpoint Research.
The robust growth comes amid buoyant festive season demand, aggressive discounting, and a major shift toward premium devices.
Analysts say the sector is evolving quickly, with brands and retailers now prioritising value growth over pure shipment volumes. The average selling price (ASP) climbed 13 per cent YoY in the quarter, driven by consumers’ growing appetite for higher-end models and increasingly attractive upgrade and financing options.
“Better household liquidity and festive optimism supported strong sales during the quarter,” said Prachir Singh, Senior Analyst at Counterpoint Research.
“Softer interest rates and easy financing further fueled upgrade-driven demand, encouraging brands to stock up early and roll out aggressive discounts, especially on older models.”
Rising consumer confidence
The premium smartphone segment—devices priced above Rs30,000—expanded the fastest, growing 29 per cent YoY in shipments. This segment’s momentum was fueled by multiple factors: easing retail inflation, rising consumer confidence, and widespread availability of trade-in and installment plans that made premium offerings more accessible.
Apple dominated the premium market with a 28 per cent value share, bolstered by sustained demand for its iPhone 16 and iPhone 15 series, as well as a strong initial response to the newly launched iPhone 17.
In a significant milestone, Apple also broke into India’s top five smartphone brands by shipment volume for the first time, cementing the country’s position as the world’s third-largest iPhone market. The iPhone 16 was the most shipped device in India for the second consecutive quarter.
Samsung secured a 23 per cent value share in the premium segment, driven by its Galaxy S and A series and record sales of its foldable phones.
Meanwhile, vivo (excluding iQOO) emerged as the leading smartphone brand by volume, capturing a 20 per cent market share thanks to its extensive offline presence and popular T-series models. OPPO (excluding OnePlus) also gained ground with a broader portfolio and strengthened retail partnerships.
Notably, analysts emphasised that enhanced retail networks, flexible financing, and strong brand appeal enabled Apple and other premium brands to reach beyond major cities, tapping into demand from India’s expanding base of technology-savvy consumers.
With India’s smartphone market hitting new highs, the industry is entering an era defined less by sheer shipment volumes and more by value-driven growth and consumer upgrades to premium devices. Brands that continue to innovate in retail, financing, and product design are well positioned to ride the next wave of market expansion.
Capacity to bend public mood is now in private hands, aligned with political power.
China’s role in global data collection triggered this deal, but the US answer risks repeating the same model under a different flag.
What began as protection from a foreign threat may end up entrenching ideological control at home.
Wealth is power, and power now owns the platforms of speech; all sizable social media in the US is owned by US billionaires.
Social media platform TikTok is a vast, endlessly scrolling stream of creativity, mimicry, and influence. Around 170 million Americans now open the app regularly, joining hundreds of millions more around the world in what has become a kind of global video bazaar. It is, as some have called it, a smorgasbord of culture.
Yet “dim sum” might be the better metaphor, because TikTok’s ultimate owner is ByteDance, a Chinese company – and that fact has been a persistent thorn in Washington’s side.
A framework deal for TikTok’s US operations to be transferred to a consortium of American investors was announced in September. This may soothe anxieties about Beijing’s reach, but it also concentrates control of one of the world’s most influential platforms in the hands of a small circle of US billionaires.
What began as a debate about data security has evolved into a reshaping of the digital marketplace itself — one that touches advertising, messaging, app development, and the telecom networks that bind them together.
The billionaire board
Dario Betti.
Wealth is power, and power now owns the platforms of speech; all sizable social media in the US is owned by US billionaires. The US TikTok board will read like a map of concentrated influence: Larry Ellison, Rupert Murdoch, Michael Dell, and their sons.
Ellison will oversee the US version of TikTok’s algorithm and data management. Oracle will “recreate” the recommendation engine and host it on its cloud, effectively owning the machine that feeds videos to 170 million Americans.
It is a quiet but massive shift in the power structure of digital attention.
The algorithm and the illusion of safety
Officials say the deal will prevent foreign manipulation. US authorities have long been concerned that TikTok’s ownership by a Chinese company could allow the Chinese government to access sensitive American user data, influence public opinion, or even use the platform for covert intelligence operations.
While the algorithm hasn’t changed, replacing Beijing’s reach with a domestic boardroom removes the potential for foreign government interference, but it doesn’t make the system transparent or immune. It only changes who can steer it – and who profits.
Larry Ellison has long believed that society runs better when it is watched. “People behave best when everything is recorded,” he once said.
Oracle has a history of collecting user data without clear consent. It settled a lawsuit in 2022 for tracking billions of people through ad-tech tools. Its dream of total visibility fits uneasily with the idea of digital freedom.
TikTok’s algorithm is not a neutral instrument. It decides what millions see, and what they don’t. To “franchise” such a system means licensing the power to influence minds. If the algorithm becomes a US asset, its tuning may reflect domestic politics rather than Chinese interests. Trump joked he would make it “100 per cent MAGA.”
It may have been a joke, but the concern is real. The capacity to bend public mood is now in private hands, aligned with political power.
Surveillance and soft power
China’s role in global data collection triggered this deal, but the US answer risks repeating the same model under a different flag. Ellison has ties not only to Trump but also to defence donors, and to the data surveillance industry.
Oracle’s partnership with police departments and intelligence agencies suggests that TikTok’s US infrastructure could merge with wider systems of monitoring.
The danger now is that national security becomes a license for domestic propaganda. What began as protection from a foreign threat may end up entrenching ideological control at home.
The mobile fallout
For advertisers, it creates another walled garden. Data that once circulated through open ad-tech channels will be captured inside Oracle’s cloud. Independent ad networks and smaller players will pay more to reach users and may see their analytics restricted.
For messaging platforms, it sets a precedent: political leaders can demand ownership changes in private apps. Once governments begin to redraw the map of platform control, no service is safe from political bargaining. Encryption and cross-border interoperability could be next.
For developers, fragmentation looms. A TikTok split into national versions suggests a future of “sovereign algorithms.” Each country could demand its own cloud, its own rules. Innovation thrives in open systems; it dies behind borders.
For telcos, the deal is another reminder of their paradox. Networks carry the traffic but lose the value. If platforms become tools of surveillance or propaganda, operators risk being conscripted into systems they do not control. The line between carrier and controller is blurring fast.
MEF believes regulation must be firm yet neutral. Security is necessary, but it must not become a pretext for political capture or monopoly control. The mobile ecosystem needs rules that protect users’ rights and ensure fair competition, not deals made in campaign season.
Changing the owner does not change the algorithm’s power. It only changes who it serves.
Dario Betti is CEO of MEF (Mobile Ecosystem Forum) a global trade body established in 2000 and headquartered in the UK with members across the world. As the voice of the mobile ecosystem, it focuses on cross-industry best practices, anti-fraud and monetisation. The Forum, which celebrates its 25th anniversary in 2025, provides its members with global and cross-sector platforms for networking, collaboration and advancing industry solutions.
