According to Goldman Sachs, the city of Ulanqab in Inner Mongolia has a total committed data center capacity of approximately 12.5GW, which surpasses the initial 10GW target set by OpenAI for Stargate. However, only about 1.2GW is currently operational. This expansion has primarily occurred in the past year, with over 70% of the capacity commitments made in that timeframe. DeepSeek plans to build approximately 1GW of data center capacity, while Xiaohongshu is reportedly considering a project of around 600MW. Companies such as ByteDance and Alibaba have also entered the market. The area benefits from low land and electricity costs, cold weather, and proximity to Beijing. Dedicated fiber optics have reduced the average latency from Ulanqab to Beijing to under 5 milliseconds.
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