DeepSeek Unveils Ambitious 1GW AI Data Center in Inner Mongolia
DeepSeek is planning to build a massive AI data center in Inner Mongolia by 2028, which will have a capacity of 1 gigawatt - equivalent to the output of a nuclear power plant. This is an expansion of the company's existing regional strategy, with some capacity expected to come online as early as 2028.
The project has no direct connection to cryptocurrencies, but it does mean more demand for high-end chips, which could impact the GPU supply chain. DeepSeek's R1 model launched in January 2025 and demonstrated that you can train competitive AI models at a fraction of the usual cost, triggering market reactions and movements in tech stocks.
The company is developing its V4 AI model and the new data center will provide the compute backbone for training and running it at scale. Investors should track several things in the coming months, including whether DeepSeek secures dedicated power purchase agreements for the Inner Mongolia facility and how the V4 model's capabilities compare to competitors when released.