ByteDance to Expand AI Data Centre Cluster in Inner Mongolia
According to a source familiar with the situation, ByteDance, the company behind TikTok, intends to enhance its AI data centre cluster in Ulanqab, Inner Mongolia. The firm is currently in initial discussions with local data centre providers to increase the city’s compute capacity by five to six gigawatts, aiming for completion by early 2028. This new cluster will be situated in the Jining district of Ulanqab, which has drawn investments from major firms like Huawei Technologies, Kuaishou, Alibaba Group, and Apple. This initiative aligns with ByteDance's strategy to boost AI infrastructure expenditure, following a reported US$29.6 billion loan from several banks, marking the second-largest dollar loan in Asia this year. The estimated cost for a one-gigawatt AI data centre is about 160 billion yuan (US$23.8 billion), indicating that the new facility could range from 800 billion to 960 billion yuan. ByteDance has not yet replied to a request for comment.
Key facts
- ByteDance plans to add 5-6 gigawatts of compute in Ulanqab, Inner Mongolia.
- The data centre cluster would be located in Ulanqab's Jining district.
- Delivery is targeted by early 2028.
- ByteDance is in preliminary talks with local vendors.
- Other companies in the area include Huawei, Kuaishou, Alibaba, and Apple.
- ByteDance secured a US$29.6 billion loan, the second-largest dollar loan in Asia this year.
- A one-gigawatt AI data centre costs around 160 billion yuan (US$23.8 billion).
- The new facility could cost 800-960 billion yuan.
Entities
Institutions
- ByteDance
- TikTok
- Huawei Technologies
- Kuaishou
- Alibaba Group Holding
- Apple
- Soochow Securities
- Bloomberg
Locations
- Inner Mongolia
- China
- Ulanqab
- Jining district