China’s DeepSeek is planning a massive artificial-intelligence data center in Inner Mongolia, according to people familiar with the matter, an ambitious move in computing infrastructure from the startup that’s shown it can compete with the leading AI models of Silicon Valley.
The Hangzhou-based company is looking to add one gigawatt worth of compute in Ulanqab, about 350 kilometers northwest of Beijing, said the people, asking not to be identified discussing private information. DeepSeek aims to build its own new facility, while leasing additional capacity from other companies, the people said. More than a dozen firms have projects planned in the city, according to a third-party compilation of local government approvals.
The company is pushing to bring at least part of its data center’s capacity online by the end of next year or early 2028, two of the people said. It is unclear what kind of chips DeepSeek will use for the project. Nvidia Corp.’s semiconductors are the industry standard for AI data centers, while Huawei Technologies is China’s national champion in the field.