DeepSeek is set to establish a new data-center campus in Ulanqab, Inner Mongolia, with plans to lease additional capacity, targeting completion by late 2027 or early 2028. This facility aims to become the largest AI data center operated by a Chinese company, although it is smaller than the 3GW and 5GW campuses currently under development in the United States. The project’s location in Inner Mongolia takes advantage of abundant land and power resources, aligning with a trend among Chinese AI firms to build large data centers in areas that offer efficient operational conditions. Additionally, Chinese developers like Z. AI are focusing on using domestically produced chips for their projects to lessen dependency on foreign technology.

Z. AI: Z. AI is a Chinese AI company and direct rival to DeepSeek in the domestic market. It is developing its own large-scale AI infrastructure projects, including a 1GW initiative that relies exclusively on domestically produced chips to advance self-reliant computing capabilities.
DeepSeek: DeepSeek is a Chinese artificial intelligence startup specializing in developing advanced large language models and related AI technologies. It is actively expanding its own data center operations, including new facilities in Inner Mongolia, to support growing compute needs for its models. This expansion aligns directly with its announced plans for a major 1GW-scale AI campus in Ulanqab.

Global Competition: Major AI compute campuses under development in the United States significantly exceed the scale of current projects by Chinese firms.
Infrastructure Expansion: Chinese AI companies are increasingly locating large data centers in regions like Inner Mongolia to leverage abundant land, power resources, and cooler climates for efficient operations.
Domestic Technology Focus: Chinese AI developers are prioritizing the use of locally produced chips in new infrastructure builds to reduce reliance on foreign hardware.