# DeepSeek Plans 1GW Data Center Campus in Inner Mongolia, Targeting Late 2027 > Source: > Published: 2026-08-02 11:52:32.388081+00:00 # DeepSeek Plans 1GW Data Center Campus in Inner Mongolia, Targeting Late 2027 - DeepSeek plans to add 1GW of AI compute capacity in Ulanqab, Inner Mongolia, approximately 350km northwest of Beijing [[1]](https://www.bloomberg.com/news/articles/2026-07-30/deepseek-is-developing-massive-ai-data-center-in-inner-mongolia) - Partial operations are targeted for late 2027 or early 2028, with the company building its own facility while leasing additional capacity [[1]](https://www.bloomberg.com/news/articles/2026-07-30/deepseek-is-developing-massive-ai-data-center-in-inner-mongolia) - Ulanqab already hosts approximately 89 data centers, with projects from Apple, Alibaba, Huawei, and Kuaishou [[2]](https://finance.yahoo.com/technology/ai/articles/deepseek-1gw-ulanqab-pivot-signals-070319392.html) - DeepSeek raised $7.4 billion (50 billion yuan) in June 2026 at a $52-59 billion valuation, with an IPO filing on the Shanghai STAR Market targeted for late 2026 [[2]](https://finance.yahoo.com/technology/ai/articles/deepseek-1gw-ulanqab-pivot-signals-070319392.html) - The specific chips that will power the facility remain undetermined, amid ongoing U.S. export control tensions [[3]](https://www.investing.com/news/stock-market-news/deepseek-plans-one-gigawatt-ai-data-center-in-inner-mongolia--bloomberg-93CH-4825904) DeepSeek is developing a 1-gigawatt AI data center campus in Ulanqab, Inner Mongolia, Bloomberg reported on July 30, citing people familiar with the matter [1]. The Hangzhou-based AI lab plans to build its own facility while leasing additional compute capacity from other operators in the region, with at least partial operations targeted for late 2027 or early 2028. The project would represent the largest AI data center facility undertaken by a Chinese company to date, though it remains smaller than the 3GW-to-5GW campuses currently under development by U.S. hyperscalers [4]. The move marks a strategic shift for DeepSeek, which has historically relied on third-party compute infrastructure rather than owning dedicated facilities. Ulanqab, a city of under 2 million people located roughly 350 kilometers northwest of Beijing, has emerged as a major hub under China's "East Data, West Compute" (东数西算) national initiative, which steers compute-intensive workloads from coastal population centers to energy-rich western provinces [2]. The region already hosts approximately 89 data centers, with projects from Apple, Alibaba, Huawei, and Kuaishou . [[2]](https://finance.yahoo.com/technology/ai/articles/deepseek-1gw-ulanqab-pivot-signals-070319392.html)## The Site Ulanqab offers two key advantages for large-scale AI compute. The city's average annual temperature of approximately 4 degrees Celsius significantly reduces the energy required for cooling power-intensive AI servers, a critical cost factor at gigawatt scale [3]. More than a dozen companies have projects planned in Ulanqab, according to local government approval records . [[3]](https://www.investing.com/news/stock-market-news/deepseek-plans-one-gigawatt-ai-data-center-in-inner-mongolia--bloomberg-93CH-4825904)The facility's total capital expenditure has not been officially disclosed. Industry benchmarks for 1GW data centers with cutting-edge AI accelerators range from $35 billion to $50 billion, though the actual figure depends heavily on chip procurement, power infrastructure, and whether DeepSeek pursues a phased buildout [[5]](https://constructionreviewonline.com/35-billion-deepseek-data-center-construction-planned-for-1gw-ai-infrastructure-in-inner-mongolia/) [2]. ## Hardware and Export Controls The specific semiconductors that will power the facility remain undetermined [3]. Nvidia processors are the industry standard for AI data centers globally, while Huawei serves as China's primary domestic alternative for AI accelerators. The project comes amid ongoing U.S.-China tensions over AI chip exports. The Trump administration has alleged that DeepSeek obtained banned Nvidia Blackwell processors for existing operations in Inner Mongolia. DeepSeek has denied the allegations, and Nvidia has stated it has found no evidence of smuggled hardware [2]. ## DeepSeek's Infrastructure Pivot The Ulanqab campus represents a significant strategic evolution for DeepSeek, which gained global attention in January 2025 for achieving competitive AI model performance using relatively modest compute budgets. The company's shift toward owning large-scale infrastructure mirrors the trajectory of major U.S. AI labs that have moved from cloud-leased compute to dedicated facilities. DeepSeek raised $7.4 billion (50 billion yuan) in a funding round in June 2026, valuing the company at approximately $52 billion to $59 billion [2]. The company is reportedly preparing for an IPO on the Shanghai STAR Market, with a filing targeted for late 2026 and a debut expected in the first half of 2027 . [[2]](https://finance.yahoo.com/technology/ai/articles/deepseek-1gw-ulanqab-pivot-signals-070319392.html)Chinese rival Z.AI is also reportedly pursuing a 1GW data center project, underscoring the escalating sovereign compute race among China's leading AI companies [4]. ## Policy Context The project aligns with China's "East Data, West Compute" initiative, launched by the National Development and Reform Commission (NDRC) in February 2022. The policy framework establishes national computing hubs in energy-rich western provinces to balance the concentration of data center demand in eastern coastal cities like Beijing, Shanghai, and Shenzhen [2]. Ulanqab has been a primary beneficiary of the policy, attracting sustained data center investment from both domestic tech companies and international operators. The region's combination of cold climate, relatively low power costs, and government incentives has made it one of China's fastest-growing data center markets. ## What Remains Unknown Key details about the project remain unconfirmed. DeepSeek has not publicly disclosed the total investment, construction timeline, power procurement arrangements, or the chip architecture that will underpin the facility. The reporting relies on unnamed sources, and the company has not issued a formal announcement [3]. Whether the full 1GW target comes online as planned or serves as an aspirational capacity ceiling will depend on financing, chip supply, and regulatory approvals. DeepSeek's hybrid approach — building its own facility while leasing from regional operators — suggests the company may phase the buildout to manage capital requirements and supply chain constraints. ## Further sources [[1] Bloomberg, "DeepSeek Plans Gigawatt-Scale AI Data Center in Inner Mongolia," Ju… ↗](https://www.bloomberg.com/news/articles/2026-07-30/deepseek-is-developing-massive-ai-data-center-in-inner-mongolia) [[2] Yahoo Finance, "DeepSeek's 1GW Ulanqab Pivot Signals China's Sovereign Compute … ↗](https://finance.yahoo.com/technology/ai/articles/deepseek-1gw-ulanqab-pivot-signals-070319392.html) [[3] Investing.com, "DeepSeek plans one gigawatt AI data center in Inner Mongolia — … ↗](https://www.investing.com/news/stock-market-news/deepseek-plans-one-gigawatt-ai-data-center-in-inner-mongolia--bloomberg-93CH-4825904) [[4] Wall St Engine via X, reporting on DeepSeek 1GW buildout and Z.AI competitor pr… ↗](https://x.com/wallstengine/status/2082898229092655561) [[5] Construction Review Online, "$35 Billion DeepSeek Data Center: Construction Pla… ↗](https://constructionreviewonline.com/35-billion-deepseek-data-center-construction-planned-for-1gw-ai-infrastructure-in-inner-mongolia/) The stories that matter, in one email. Free — unsubscribe anytime.