Z.ai Activates 1GW Data Center in China Running Entirely on Domestic Chips

Z.ai, the Beijing-based AI developer formerly known as Zhipu, has completed construction and begun partial operations at a 1-gigawatt data center built exclusively on Chinese-made AI accelerators, Bloomberg reported on July 20, 2026. The facility houses multiple computing clusters each containing more than 10,000 domestic chips and is used to train the company's GLM model series with zero Nvidia hardware involved. Z.ai stock jumped approximately 20% following the report, and the company is on track to generate $1 billion in annual recurring revenue.

Z.ai Activates 1GW Data Center in China Running Entirely on Domestic Chips - Z.ai has completed and partially activated a 1GW data center stocked entirely with Chinese-made AI accelerators, making it one of the largest compute facilities built by a Chinese AI lab 1 https://www.bloomberg.com/news/articles/2026-07-20/z-ai-completes-giant-data-center-with-chinese-chips-to-train-ai - The facility runs multiple clusters of 10,000+ domestic chips each and is used to train Z.ai's GLM model series — with zero Nvidia hardware involved 2 https://www.tomshardware.com/tech-industry/artificial-intelligence/z-ai-powers-up-1gw-ai-data-center-built-entirely-on-chinese-chips - Z.ai recently acquired heterogeneous computing software firm Zhongke Jiahe and is in early-stage talks with Chinese chip designers about co-developing custom AI chips for GLM workloads 5 https://finance.biggo.com/news/31e53f22-4522-45f5-a11a-db007ef4fecf - The project aligns with China's broader $295 billion, five-year data center buildout plan requiring at least 80% domestic technology content 6 https://www.bloomberg.com/news/articles/2026-06-09/china-prepares-295-billion-plan-to-fund-nationwide-ai-buildout - Z.ai stock 02513.HK jumped approximately 20% following the Bloomberg report, with the company on track for $1 billion in annual recurring revenue 3 https://thenextweb.com/news/z-ai-data-centre-chinese-made-chips-nvidia Z.ai, the Beijing-based AI developer formerly known as Zhipu, has completed construction and begun partial operations at a 1-gigawatt data center built exclusively on Chinese-made AI accelerators, Bloomberg reported on July 20, 2026 1 . The facility houses multiple computing clusters, each containing more than 10,000 domestic chips, and is being used to train the company's GLM family of large language models. The 1GW power capacity — enough to supply roughly 750,000 homes — places the site among the largest compute facilities ever stood up by a Chinese AI lab 2 . No specific geographic location has been disclosed, and Z.ai declined to comment on the Bloomberg report . The chip supplier was not officially named, though Z.ai released its GLM-5.2 model in June 2026 trained entirely on Huawei Ascend accelerators 3 https://thenextweb.com/news/z-ai-data-centre-chinese-made-chips-nvidia . 4 https://technode.com/2026/07/21/z-ai-completes-construction-of-a-1gw-class-ai-data-center-using-chinese-chips/ Z.ai, which listed on the Hong Kong Stock Exchange in January 2026 under ticker 02513.HK, saw its shares jump approximately 20% following the report 3 . The company is on track to generate $1 billion in annual recurring revenue, reaching its 2026 sales target in July . 3 https://thenextweb.com/news/z-ai-data-centre-chinese-made-chips-nvidia The Facility Bloomberg's report described a completed 1GW-class data center that has started partial operations, designed to provide the computing capacity needed to develop Z.ai's most advanced GLM systems 1 . The facility operates several clusters of more than 10,000 chips apiece, though the specific accelerator model and manufacturer were not disclosed by name in the report . 2 https://www.tomshardware.com/tech-industry/artificial-intelligence/z-ai-powers-up-1gw-ai-data-center-built-entirely-on-chinese-chips Z.ai's recent training history points strongly to Huawei's Ascend architecture. The company released GLM-5.2 in June trained entirely on Huawei Ascend chips with no Nvidia involvement 4 . China's broader domestic accelerator ecosystem also includes Cambricon Technologies, Moore Threads, and Kunlunxin . 2 https://www.tomshardware.com/tech-industry/artificial-intelligence/z-ai-powers-up-1gw-ai-data-center-built-entirely-on-chinese-chips The exact location of the facility has not been made public. Z.ai declined Bloomberg's request for comment 3 . Software and Chip Strategy Alongside the data center buildout, Z.ai spent hundreds of millions of yuan acquiring Zhongke Jiahe, a heterogeneous computing software firm spun out of the Chinese Academy of Sciences' Institute of Computing Technology 5 . Zhongke Jiahe's team has developed compilers for multiple domestic chip architectures including Loongson, Sunway, Cambricon, and Huawei Ascend . 5 https://finance.biggo.com/news/31e53f22-4522-45f5-a11a-db007ef4fecf The acquired firm's portfolio spans compilers, virtual instruction sets, runtime environments, and inference engines. Its SigInfer engine reportedly reduces inference latency by up to 74 times 5 . Z.ai is also in early-stage discussions with Chinese chip designers about co-developing custom AI accelerators tailored to GLM workloads . 5 https://finance.biggo.com/news/31e53f22-4522-45f5-a11a-db007ef4fecf The acquisitions signal Z.ai's intent to control a vertically integrated domestic AI stack — from custom silicon to model training — independent of U.S. technology. China's Domestic Compute Buildout Z.ai's 1GW facility is the most visible manifestation of China's accelerating push to build AI infrastructure on domestic technology. In June 2026, Bloomberg reported that Chinese government agencies are drafting a plan to spend approximately 2 trillion yuan $295 billion over five years on a nationwide network of interconnected data centers 6 . The plan calls for at least 80% domestic technology content, including AI chips, effectively shutting out Nvidia and AMD 6 . State-owned firms such as China Mobile and China Telecom would operate the bulk of the facilities. Sovereign debt instruments, including ultra-long-term special government bonds, are expected to fund most of the buildout . 6 https://www.bloomberg.com/news/articles/2026-06-09/china-prepares-295-billion-plan-to-fund-nationwide-ai-buildout Z.ai's facility follows Alibaba's launch of its own all-Chinese-chip data center in April 2026 using 10,000 Zhenwu chips 4 . However, Z.ai's reported 1GW capacity is dramatically larger than any previously disclosed Chinese AI compute project. Financial Context Z.ai listed on the Hong Kong Stock Exchange on January 8, 2026, raising approximately $558 million in its IPO at HK$116.20 per share 7 . The stock has since risen roughly 1,500% from its listing price . The company subsequently completed a $4 billion follow-on placement 7 https://www.cnbc.com/2026/01/08/china-ai-tiger-goes-ipo-zhipu-hong-kong-debut-openai-knowledge-atlas-hsi-hang-seng-listing.html . 7 https://www.cnbc.com/2026/01/08/china-ai-tiger-goes-ipo-zhipu-hong-kong-debut-openai-knowledge-atlas-hsi-hang-seng-listing.html The company's infrastructure spending comes alongside rapid revenue growth — but also rising costs. Z.ai's revenue grew 132% in recent quarters, while cost of sales grew 213%, prompting the company to raise API prices by 83% in Q1 2026 5 . Z.ai is nonetheless on track to reach $1 billion in annual recurring revenue, hitting its 2026 sales target in July . 3 https://thenextweb.com/news/z-ai-data-centre-chinese-made-chips-nvidia Further sources 1 Bloomberg report on Z.ai completing 1GW data center with Chinese chips, July 20… ↗ https://www.bloomberg.com/news/articles/2026-07-20/z-ai-completes-giant-data-center-with-chinese-chips-to-train-ai 2 Tom's Hardware — Z.ai powers up 1GW AI data center built entirely on Chinese ch… ↗ https://www.tomshardware.com/tech-industry/artificial-intelligence/z-ai-powers-up-1gw-ai-data-center-built-entirely-on-chinese-chips 3 The Next Web — Z.AI built a giant AI data centre on Chinese-made chips ↗ https://thenextweb.com/news/z-ai-data-centre-chinese-made-chips-nvidia 4 TechNode — Z.ai completes construction of a 1GW-class AI data center using Chin… ↗ https://technode.com/2026/07/21/z-ai-completes-construction-of-a-1gw-class-ai-data-center-using-chinese-chips/ 5 BigGo Finance — Zhipu AI's Compute Empire Takes Shape: Building 1GW Data Center… ↗ https://finance.biggo.com/news/31e53f22-4522-45f5-a11a-db007ef4fecf 6 Bloomberg — China Plans $295 Billion Investment to Build Nationwide AI Data Cen… ↗ https://www.bloomberg.com/news/articles/2026-06-09/china-prepares-295-billion-plan-to-fund-nationwide-ai-buildout +1 more The stories that matter, in one email. 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