Ulanqab becomes major AI computing hub with 89 data centers

Ulanqab, Inner Mongolia, has emerged as a major hub for AI computing power, attracting 89 data center projects from tech giants including Huawei, Alibaba, Tencent, Baidu, ByteDance, and Kuaishou. The region's competitive advantage lies in its abundant wind and solar resources, which allow for green electricity costs that are 30% to 40% lower than those in eastern coastal provinces.

This industrial surge has significantly boosted the local economy, with Ulanqab's GDP increasing by 53% between 2020 and 2025. The total investment in these projects exceeds 500 billion yuan. Many facilities are currently under construction or in the early stages of operation, concentrated in areas such as the Chahar High-tech Zone.

However, the rapid expansion faces environmental challenges. The massive electricity consumption and the high water requirements for cooling systems have raised concerns regarding local water security. With Ulanqab's per capita water resources being less than one-fourth of the national average, there are warnings that data center operations could exacerbate droughts and create tension with local herders over water usage.