Bloomberg reported on the 31st that artificial intelligence (AI) startup DeepSeek plans to build a large AI data center with a capacity of 1 gigawatt (GW) in the Inner Mongolia Autonomous Region of China.
The facility is said to be slated for Ulanqab, about 350 kilometers northwest of Beijing.
DeepSeek plans to build its own new facility while also leasing computing infrastructure from other corporations. In Ulanqab, more than 10 corporations are already pushing data center projects.
DeepSeek aims to bring part of the facility online in late 2027 or early 2028. It is not yet known what kind of AI Semiconductor will be used in the data center.
Once completed, it is expected to become the largest among AI data centers operated by Chinese corporations. However, it is smaller compared with 3 GW or 5 GW data center projects being pursued by U.S. companies.
Ulanqab has an advantage in that its average annual temperature is low, about 4 degrees, which can reduce the expense of cooling heat generated by AI servers. For this reason, it is drawing attention as a prime data center site in China.
Bloomberg analyzed that the project is part of China's efforts to prevent the AI computing infrastructure gap from widening as U.S.-China AI competition intensifies.