More than half of China’s data center capacity now sits in northern and northwestern regions, and these areas are set to overtake Beijing in computing power by 2028. Ulanqab in Inner Mongolia has emerged as the central hub of this redistribution with commitments of 12.5 GW of capacity, 70% of which were announced in the past year alone, notably with DeepSeek building a 1 GW AI campus expected by late 2027 or early 2028. Electricity and computing costs there are respectively 50% and 60% lower than in the Beijing corridor, while energy efficiency measured by PUE reaches 1.04 to 1.15 compared to 1.32 to 1.38 in the east. The Chinese government supports this transformation with an investment of 2 trillion yuan, approximately $295 billion over five years, targeting full national grid interconnection by 2028 and a total capacity expected to nearly double by 2030, with AI and high-performance computing workloads projected to represent 48% of that capacity.
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