China expands AI computing infrastructure in Inner Mongolia

China is seeing a significant expansion in AI computing infrastructure, particularly in Inner Mongolia. China Mobile has completed an expansion project for its Hohhot Intelligent Computing Center. The facility features a total computing power of 20,100P, with 16,700P dedicated to intelligent computing. Approximately 90% of this capacity serves the Beijing-Tianjin-Hebei region. The center utilizes advanced liquid cooling technology and achieves a Power Usage Effectiveness (PUE) of 1.15, with 88% of its energy sourced from green electricity.

Simultaneously, cities like Ulanqab are becoming major hubs for data center construction due to low electricity costs, available land, and favorable climates for cooling. Major tech firms including Alibaba, Huawei, and Kuaishou are establishing footprints in the region. This shift highlights a transition in the AI industry from a pure race for computing power to a focus on operational efficiency and cost management. While model service prices are decreasing, cloud providers are increasing capital expenditures on physical infrastructure to meet long-term demand.