RedNote plans US$2.2 billion Inner Mongolia data centre to expand AI capacity
Shanghai-based RedNote is planning a 600-megawatt data centre in Inner Mongolia, signalling a major push by Chinese tech firms to build out the private computing infrastructure required for advanced artificial intelligence.
RedNote, a Shanghai-based technology company, is developing a 600-megawatt data centre in Inner Mongolia. The project carries a budget of roughly 15 billion yuan, or US$2.2 billion, excluding semiconductor expenses. Delivery of the massive computing facility is targeted for the first quarter of 2027.
The facility will be situated either in Ulanqab proper or just west of the city. Ulanqab is rapidly emerging as a critical hub for AI infrastructure due to its low power costs and extensive wind and renewable energy projects. This geographic strategy aligns with broader industry trends, as rival firm DeepSeek is also actively recruiting for local positions in the region.
To execute the Ulanqab buildout, RedNote has been in talks with VNET, which operates as one of the largest data centre providers in China. Neither RedNote nor VNET responded to requests for comment regarding the partnership or the project's progress on Friday. An individual familiar with the matter requested anonymity due to the private nature of the ongoing negotiations.
The massive capital deployment highlights a strategic shift in how China funds its technological advancement and computing infrastructure. While enterprise spending currently dominates the sector, government officials see significant potential for increased private capital to accelerate domestic capabilities.
An official named Jiang stated during a recent briefing that the government intends to strengthen guidance and support to foster a more favourable environment for these private investors. This policy push aims to ensure that the rapid buildout of AI infrastructure is sustainably funded by the broader market.
For financial markets, the RedNote project underscores the immense capital requirements of the AI boom. It also illustrates how Chinese technology firms are attempting to balance heavy power demands with operational efficiency by moving critical infrastructure to renewable-rich provinces.
