DeepSeek Reportedly Planning 1GW AI Data Center in Inner Mongolia
Chinese AI startup DeepSeek is reportedly planning to build a massive 1-gigawatt (GW) AI data center in Ulanqab, Inner Mongolia. Part of the facility is expected to become operational by late 2027 or early 2028, and the company also plans to lease additional computing power. A 1GW data center represents a massive scaling effort in AI infrastructure, reflecting China's push to expand its high-performance computing capabilities despite geopolitical constraints. The project highlights DeepSeek's ambition to compete globally by securing massive computing resources. The specific chips to be used in the facility remain undisclosed, though Huawei and Nvidia are key hardware options. Ulanqab was chosen due to its low average annual temperature of 4°C, which naturally reduces the cooling costs of high-power AI servers.
## BACKGROUND
Gigawatt-scale data centers are massive facilities that require electricity equivalent to the consumption of a major metropolitan area. Ulanqab, located in Inner Mongolia, has developed into a major cloud computing hub in China under the "Cloud Valley" initiative. The region's cold climate and favorable energy policies make it a prime location for tech companies to build energy-intensive computing infrastructure.