China’s data-centre expansion powers its AI ambitions

A BBC report by Laura Bicker describes a fast-growing data-centre industry in Ulanqab, Inner Mongolia, where potato fields are being joined by large facilities intended to support China’s AI platforms.

China is building hundreds of data centres in sparsely populated regions including Ulanqab, Ningxia, Gansu and Guizhou. Cheaper land, cooler weather and expanding wind and solar capacity have helped attract projects linked to Huawei, ByteDance and DeepSeek. Water supplies remain a concern in arid parts of Inner Mongolia, while some electricity grids still rely on coal.

Beijing aims to embed AI across 90% of industries and society by 2030. It is also promoting more affordable open-source models, contrasting them with closed approaches used by companies such as OpenAI and Anthropic. Sharing technology has helped Chinese firms innovate despite limited access to advanced chips, according to the report.

The expansion has created opportunities for engineers and researchers, including some returning from the United States. Jack Zhang of the University of Science and Technology of China said he returned after studying at Yale and Cambridge.

Residents interviewed anonymously raised concerns about water, land, relocation and limited local employment. Others, including a local man identified by the surname Zhang, said their children had found jobs at the new facilities. He said China was no longer like the 1960s, when it was relatively backward.