DeepSeek Plans Large AI Data Center in Inner Mongolia
Chinese AI startup DeepSeek is planning to build a large AI data center in Inner Mongolia to expand its computing power capacity. The project aims to add 1GW of capacity.
Chinese artificial intelligence startup DeepSeek is planning to construct a major AI data center in Ulanqab, Inner Mongolia, according to sources cited by Bloomberg. This infrastructure project signifies a strategic expansion of the company's AI computing power.
The plans involve adding 1 gigawatt (GW) of computing capacity, with the company also exploring options to lease additional power from other providers. Sources suggest that a portion of the data center's capacity could become operational by late 2027 or early 2028. The specific chips to be used are not yet disclosed, though Nvidia and Huawei are key players in the AI hardware sector.
Ulanqab's location, with an average annual temperature of around 4°C, offers a natural advantage for data centers by reducing cooling requirements for high-power AI servers. Such a 1GW facility could potentially cost up to $50 billion, although construction costs in China are generally lower than in the United States.
The move underscores DeepSeek's ambition to scale its operations in the rapidly growing AI market. The company has previously advertised positions in Ulanqab, hinting at developments related to data center infrastructure.