Chinese AI startup DeepSeek is planning to construct a data centre with 1GW of computing capacity in Ulanqab, Inner Mongolia, according to people with knowledge of the matter, reported Bloomberg.
The proposed data centre will be located approximately 350km northwest of Beijing.
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Sources said the company intends to build its own new facility while also leasing additional capacity from other operators in the region.
More than 12 firms reportedly have local government approvals for projects in the same city.
DeepSeek aims to bring part of the data centre online by the end of next year or early 2028, according to two people with knowledge of the matter, though details about chip suppliers for the site have not been disclosed.
DeepSeek did not respond to requests for comment outside regular office hours.
Several companies are currently expanding data centre capacity to support artificial intelligence (AI) development. Z.AI, formerly known as Zhipu, has also announced plans for a 1GW data centre using only Chinese-made chips.
US firms such as OpenAI and Anthropic PBC have invested tens of billions of dollars into AI-focused compute infrastructure, with some American data centres reaching 3GW to 5GW in scale.
Job postings from DeepSeek indicate that the company is recruiting staff to support gigawatt-scale campus construction in locations including Hangzhou, Beijing, and Inner Mongolia.
Ulanqab’s cold climate, with an average annual temperature of about 4 degrees Celsius, is seen as advantageous for reducing cooling costs associated with large-scale AI servers. China Mobile and other companies have also shown interest in the area.
Bloomberg previously reported that DeepSeek has begun preparations for an initial public offering and recently completed a $7bn funding round at a valuation of nearly $50bn.
