A rural city, once known for livestock, now provides China’s AI computing fuel

China's push for AI infrastructure is creating new economic centers, with Ulanqab in Inner Mongolia emerging as a prime example. The city's natural advantages of strong winds for power generation and a cool climate for data center cooling are being leveraged to build facilities like Envision Group's Galaxy Campus. This campus, with a planned power capacity over two gigawatts, reflects a national strategy to decentralize AI computing power and tap into regional resources. The scale of Ulanqab's development, including the capacity to host one million AI accelerators, points to China's ambition to secure domestic AI computing fuel. The challenge for China will be ensuring that the rapid build-out of such massive infrastructure translates into sustained innovation and competitive advantage for its AI sector, especially as global demand for computing power continues to surge. The reliance on specific geographic advantages also raises questions about long-term energy stability and environmental impact.