Once known for grazing livestock and potato farming, Ulanqab has become a critical player in China’s AI infrastructure landscape, drawing on its abundant renewable energy to power massive AI computing facilities.
- Ulanqab hosts China’s rapidly growing renewable-powered AI data centers
- Envision Group’s Galaxy Campus is among the world’s largest AI computing facilities
- AI token demand surge drives massive infrastructure and energy needs
What happened
Historically an agricultural and livestock center, Ulanqab in Inner Mongolia is now pivoting to become a leading site for AI computing in China. This shift is highlighted by the recent launch of Envision Group’s Galaxy Campus, a massive AI data center spanning 120,000 square meters and designed to support up to one million AI accelerators. Its power capacity exceeds two gigawatts, positioning it as one of the world’s largest facilities dedicated to AI workloads.
The location was strategically selected for its significant renewable energy resources, especially wind power. Ulanqab accounts for about ten percent of China’s wind energy and a third of Inner Mongolia's wind resources. This allows AI data centers to operate with a substantial portion of green electricity, integrating energy production and consumption efficiently on-site.
Why it matters
Ulanqab’s transformation reflects China’s broader strategy to build sustainable and efficient AI infrastructure that meets rapidly growing demand. The surge in AI model token consumption—from 100 billion daily tokens in early 2024 to over 140 trillion by March 2026—demands enormous computing power and corresponding energy supply. Leveraging renewable energy minimizes environmental impact and supports national climate goals.
The city’s evolving data center ecosystem now hosts major players such as Huawei, Apple, UCloud, and Kuaishou, among others, signaling strong industry confidence. With nearly 90 data center projects signed, most targeting AI workloads, Ulanqab stands out as a key node in China’s AI supply chain and a major competitor to other regional hubs like Johor, Malaysia.
What to watch next
Monitor further expansion plans in Ulanqab, including how new projects scale computing capacity beyond the current 12.5 gigawatts under development. The city’s adoption of green energy for AI computing could serve as a model for other regions balancing high demand with sustainability goals.
It will also be important to track the downstream impact of this infrastructure on AI innovation and commercial applications across China. The interplay between raw computing power, energy availability, and AI token consumption will shape competitive dynamics in the global AI market, especially as China aims to lead in the growing AI economy.