DeepSeek plans construction of a 1-gigawatt AI data center in Inner Mongolia to scale inference infrastructure.

Chinese artificial intelligence developer DeepSeek is reportedly planning to construct a one-gigawatt (1GW) data center in Ulanqab, located in the south-central part of China's Inner Mongolia Autonomous Region, according to a Bloomberg report. The massive facility is expected to achieve partial operational status by late 2027 or early 2028.

The proposed infrastructure underscores the significant investment required to support advanced AI workloads. Sources familiar with the project indicate that DeepSeek is targeting a phased operational rollout, with the facility representing a major expansion of compute capacity.

DeepSeek gained prominence in early 2025 following the release of its open-source large language model, which demonstrated performance comparable to leading US models while using fewer computing resources. The company is also reportedly developing its own AI chips intended to power future generations of its models—a move that aligns with China's broader push for domestic technology self-sufficiency in AI infrastructure.

Inner Mongolia is a key region under China's "Eastern Data, Western Compute" initiative, which aims to develop large-scale computing infrastructure in the country's western areas, balancing computing power distribution and leveraging regions with abundant land and power resources. In related developments, Chinese AI firm Z.ai is reportedly operating a portion of a 1GW data center using domestically manufactured AI chips, though the facility's location, capacity, and chip supplier remain undisclosed.