DeepSeek is gearing up to launch a massive 1 gigawatt AI data center in Inner Mongolia, aiming to have some capacity operational by early 2028. This scale of power consumption rivals that of a nuclear power plant and surpasses the electricity use of many medium-sized cities.
The company has already begun recruiting engineers and delivery managers in Ulanqab, signaling that construction and deployment are underway. This project builds on DeepSeek’s earlier installations in Hohhot’s New District, indicating a strategic regional expansion rather than a fresh start.
Headquartered in Hangzhou, DeepSeek is developing its V4 AI model which will rely heavily on this new data center for training and inference at scale. While this initiative is not directly linked to cryptocurrencies or blockchain technology, it will impact the GPU supply chain significantly by increasing demand for high-end chips. The cheaper compute costs demonstrated by DeepSeek’s previous R1 model led to a surge in market interest and are expected to fuel further growth in AI infrastructure investment.
