RedNote plans US$2.2 billion data centre in Inner Mongolia as China boosts AI infrastructure

RedNote, based in Shanghai, intends to establish a data centre in Ulanqab, Inner Mongolia, with a capacity of 600 megawatts and an estimated investment of approximately 15 billion yuan (US$2.2 billion), excluding semiconductor expenses, as revealed by an anonymous source. This initiative aligns with China's efforts to enhance AI infrastructure, with governmental support for private sector investments in computing facilities. Discussions are ongoing between RedNote and VNET, one of the major data centre operators in China, aiming for project completion by the first quarter of 2027. Ulanqab, recognized for its renewable energy initiatives, offers low energy costs, making it a promising AI hub. Additionally, DeepSeek is actively hiring in Inner Mongolia to leverage the region's benefits. Jiang mentioned during a briefing that the government sees ample opportunities for private investment and intends to improve guidance and support for a more conducive investment climate. Neither RedNote nor VNET responded to inquiries for comments.