China relocates AI data centers west for cheaper renewable power
China is relocating its data centers from packed eastern cities to the less crowded western regions like Inner Mongolia.
The big idea? Tap into cheaper renewable energy and wide-open land to power the next wave of AI.
Since kicking off the "Data in the East, Computing in the West" plan in 2022, Ulanqab, a city about 350km from Beijing, has become a major hub for this digital shift.
Ulanqab attracts AI data centers
Ulanqab is seeing a surge of new data centers as AI needs more computing muscle.
According to BloombergNEF, more than half of China's data center projects are now up north or out west. By 2028, north and northwestern China could even outpace Beijing and Shanghai for data processing power.
Tech companies like DeepSeek and Z.AI Co. are flocking here thanks to cheap electricity, cooler weather (great for servers), and plenty of space.
Beijing mandates approvals and energy rules
With all this rapid expansion, Beijing has stepped in with new rules: national approvals for projects and strict requirements on energy efficiency and renewables.
It's all about making sure these new digital hubs grow responsibly without going overboard.