Building Own Computing Base! DeepSeek Plans 1GW Data Center in Inner Mongolia to Catch Up with Silicon Valley

Chinese AI startup DeepSeek is planning to build a large-scale artificial intelligence (AI) data center in Inner Mongolia to expand its computing infrastructure and accelerate its pursuit of Silicon Valley's AI leaders.

According to Bloomberg, citing sources familiar with the matter, Hangzhou-based DeepSeek plans to add 1 gigawatt (GW) of computing capacity in Ulanqab, Inner Mongolia, about 350 kilometers northwest of Beijing.

The sources said DeepSeek will build its own data center while also leasing additional computing resources from other providers. According to third-party compilations of local government approvals, over ten companies have already planned related projects in Ulanqab.

Two of the sources indicated that DeepSeek aims to bring some of its data center computing capacity online by late 2027 or early 2028.

DeepSeek has not yet decided which chips the project will use. NVIDIA (NVDA-US) chips remain the global standard for AI data centers, while Huawei is a major supplier of domestic AI chips in China.