Inner Mongolia city becomes China's AI hub powered by cheap energy

nordicinst · x · 2026-08-22

Wired reports that Ulanqab, Inner Mongolia, has become a crucial hub for China's AI data centers. The city's cold climate, proximity to Beijing, and extremely cheap electricity from wind and coal have attracted nearly 100 data centers since 2016. With a pledged capacity of 12.5 gigawatts—surpassing OpenAI's Stargate Project—Ulanqab highlights that cheap power, not just code, is driving the AI boom.

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