China Shifts AI Computing Hubs to Remote Western Regions

The Government of China is expanding its artificial intelligence computing infrastructure into remote northern and northwestern regions through a state strategy known as dongshu xisuan, or Data in the East, Computing in the West. This initiative relocates data-intensive tasks that can tolerate latency, including model training and cloud storage, away from eastern megacities such as Beijing and Shanghai.

Ulanqab has emerged as a primary hub for this expansion due to its available land, local government support, and abundant renewable energy. Research from BloombergNEF indicates that China is on track to more than double its live computing equipment capacity within five years. Projections suggest that cities like Ulanqab will overtake major metropolitan regions in active computing equipment by 2028.

To manage this rapid growth and prevent industrial overcapacity, the central government now requires national approval for all large-scale data center projects.