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PoliticsInner Mongolia, China

Data‑Centre Desert: China Builds AI Powerhouses on Inner Mongolian Grasslands

In the Inner Mongolian grasslands, farmers now share their fields with massive data centres powering China’s AI push—an unprecedented blending of agriculture and high‑tech infrastructure.

Source: bbc.co.uk1 min read
Data centre construction in Inner Mongolia
Data centre construction in Inner Mongolia (These potato farmers’ new neighbours are at the heart of China’s AI race with the US)

In brief

China’s AI ambitions are literally turning the Inner Mongolian steppe into a sprawling data‑centre hub, with new steel‑skeletons rising beside potato fields. Local farmers witness rapid construction while the government pushes a vision of 90 % AI integration by 2030, backed by green energy and a growing talent pool. Yet the project brings uneven benefits—displacement, water shortages, and mixed community sentiment—highlighting the tensions between national ambition and rural livelihoods.

In the wide steppes of Ulanqab, farmers sweep potted potatoes while machines hoist steel ribs that will become the backbone of China’s AI future.

Ulanqab—known for its steppes and volcanoes—has long been celebrated as China’s potato capital, but the region now hosts a wave of data‑centre sites for Huawei, ByteDance, DeepSeek and other tech giants.

Hundreds of workers in yellow helmets haul heavy equipment while wind‑swept cranes erect steel rooftops and brickwork takes shape, all at a pace the locals call "China speed.”

"This is an infrastructure maniac," one worker joked. "There is a phase every year – we’re only on phase two," an electrical engineer added, hinting at a long‑term rollout.

Antarctic data centres house the computing power that underpins China’s AI surge, a niche the Communist Party sees as vital to embedding AI in 90% of industry and society by 2030.

The government also offers young engineers and researchers a clear pathway: study at top domestic universities, or return from overseas to apply their expertise in AI‑driven health, materials and national security research.


Potato field near new data centres
These potato farmers’ new neighbours are at the heart of China’s AI race with the US

Green energy fuels most new sites, yet coal still powers a fraction of the grid, and the arid climate threatens water supplies—a point many locals say remains largely unaddressed.

While a handful of community members report job gains and improved local infrastructure, others feel little benefit and fear land loss as entire villages relocate to accommodate the massive complexes.

Some residents, with limited internet access, see little relevance of AI to their daily lives, reflecting a wider generational gap in China’s rapid tech rollout.

Cinematic images of robust data centres juxtaposed with the quiet, rugged steppe underscore a narrative of progress and disquiet, reminding us that the push for AI supremacy comes with significant social and environmental cost.

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