According to Goldman Sachs, Ulanqab, a prefecture-level city in Inner Mongolia, has committed to a total data center capacity of approximately 12.5GW, which exceeds OpenAI's initial target of 10GW 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 this timeframe. DeepSeek plans to build approximately 1GW of data centers, while Xiaohongshu is reportedly considering a project of around 600MW. Companies like 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.
All Comments