China debuts largest AI industrial park in Ulanqab, betting big on desert computing

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China has inaugurated its largest artificial intelligence industrial park in Ulanqab, Inner Mongolia, centered on Envision Group’s Galaxy Campus. The facility spans 120,000 square meters and is designed to house up to 1 million AI accelerators with a target compute capacity exceeding 1 million petaflops. The city benefits from cold temperatures averaging 4°C, abundant wind and solar energy, and aims to surpass 2 gigawatts of energy capacity sourced primarily from renewables. The project aligns with Beijing’s « East Data, West Computing » national strategy, which routes data-intensive workloads from expensive eastern cities to resource-rich western regions. AI startup DeepSeek is reportedly in discussions for approximately 1 GW of AI data center capacity in the region.

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