Inside RedNote's $2.2 Billion AI Data Center Plan and China's Trillion-Yuan Computing Push

Ulanqab Is Becoming China's AI Data Center Capital

Ulanqab has rapidly emerged as a preferred location for energy-intensive AI infrastructure. The Horinger Data Center Cluster, which spans Hohhot and Ulanqab, already has 291,000 petaflops of total computing capacity, with over 80% powered by renewable energy . In the first quarter of 2025 alone, power consumption of data centers within the cluster reached 1.22 billion kWh, with 84.57% supplied by renewables .

The region has also launched innovative infrastructure projects like the integrated source-grid-load-storage data center, which combines wind and solar power generation with intelligent transmission and energy storage, consuming 2.19 billion kWh of clean electricity annually .

National Context: The 15th Five-Year Plan and the Computing Network Push

RedNote's data center is not an isolated project. It is enabled by a sweeping national policy environment that has elevated AI computing infrastructure to a strategic priority:

• NDRC's 4 trillion yuan projection: At a July 31, 2026 press briefing, NDRC spokesperson Jiang Yi stated that China's computing power networks are expected to receive 4 trillion yuan (~US$589 billion) in new direct investment during the 15th Five-Year Plan period (2026–2030) .
• Policy backbone: The 15th Five-Year Plan outline, released in March 2026, calls for deepening the "East Data, West Computing" project and building a "multi-level computing power infrastructure system and a national integrated computing power network" .
• Strategic elevation: In April 2026, China's Politburo elevated computing networks to the same strategic tier as water networks and power grids, classifying AI infrastructure as national strategic infrastructure under the "Six Networks" blueprint . The Six Networks initiative commits over 7 trillion yuan in annual investment across six critical network categories, including computing power .
• Private investment expected: The NDRC has noted that computing infrastructure investment comes mostly from enterprises, creating major room for private investment in the sector .

What This Means for RedNote and China's AI Race

RedNote's data center investment comes as the platform prepares for an initial public offering . Scaling AI computing capacity is critical for social media and e-commerce platforms that increasingly rely on machine learning for content recommendation, search, and advertising.

But the broader story is about China's determination to build a unified national computing network — a digital infrastructure layer that can rival the scale of water or power grids. With 4 trillion yuan in direct investment expected through 2030, and the Politburo treating compute as strategic infrastructure, projects like RedNote's 600 MW facility in Ulanqab are likely the first of many .