Summary of Key Points
On August 6th, Envision Technology officially launched its operations at the “Xinghe Base” in Ulanqab, Inner Mongolia. This base is a super AI computing hub capable of handling millions of P of computing power, primarily serving the domestic computing needs of leading technology and AI companies. The base adopts a “direct connection to green energy” model (using wind and solar power directly), with a total planned power capacity of 2GW. Ulanqab was chosen as the location because it is one of the eight national nodes for the “East Data, West Computing” initiative (which features low network latency, ideal for real-time computing requirements), and the region is rich in green energy resources (with 67% of its electricity coming from renewable sources). Since electricity costs account for 80% of the operating expenses of AI data centers, the use of low-cost green energy is a critical factor in site selection. Ulanqab is transitioning from being known as the “Grassland Cloud Valley” to becoming the “Token Capital.” Envision also plans to replicate this green energy computing model in other regions abroad where electricity infrastructure is limited but there is a high demand for computing power.
Detailed Analysis
1. What is the Xinghe Base?
The Xinghe Base is not an ordinary data center; it is a specialized “computing hub” designed for AI services. It has the capacity to handle millions of P of computing power, which is sufficient to support the training of large-scale AI models (such as those on par with ChatGPT) or process massive amounts of real-time data (for applications like autonomous driving and smart city analytics). Its primary clients are leading technology companies (like Baidu and ByteDance) and AI firms, focusing on meeting their demand for domestically produced computing resources (possibly using domestically manufactured chips).
The most distinctive feature of the base is its direct connection to green energy: it converts local wind energy into electricity through self-built wind farms and dedicated lines, eliminating the need to rely on the public power grid. This approach reduces electricity costs and enhances stability, as AI chips are highly sensitive to power fluctuations; a power outage could result in the loss of days’ worth of training progress.
2. Why Ulanqab?
Ulanqab’s selection as a computing hub is not accidental; it boasts three significant advantages:
- East Data, West Computing Node: As part of the national initiative to move computing tasks from eastern cities (such as Shanghai and Beijing) to the western regions for processing, Ulanqab is one of the eight key nodes. This ensures low network latency, essential for real-time AI applications like live streaming and predictive algorithms.
- Leading Green Energy Resources: The region has abundant wind and solar energy, with 67% of its electricity coming from renewable sources. Using green energy not only reduces costs but also aligns with the country’s “dual carbon” goals.
- Cost Advantages: Local electricity prices are already low, and the direct supply of green energy further lowers the operating expenses of AI data centers, where electricity costs account for up to 80% of total costs.
3. Green Energy: The Lifeline of AI Data Centers
AI data centers operate 24/7, and their hardware (such as GPUs) consumes a lot of power. In this case, electricity costs make up 80% of the operating expenses. Therefore, access to affordable and stable green energy is crucial.
4. Ulanqab’s Long-Term Vision: From “Grassland Cloud Valley” to “Token Capital”
Ulanqab aims for more than just being a computing hub; it has broader plans:
- Computing Power Goals: By 2025, the base aims to reach 125,000 P of computing power, and by 2026, this figure is expected to exceed 200,000 P (it has already reached 165,000 P in the first half of 2026).
- Green Energy and Energy Storage: By the end of 2025, the region plans to have a new energy capacity of over 2.028 GW, with green energy accounting for 67% and energy storage reaching 3.24 MW/11.06 MWh (energy storage will help mitigate the instability of wind and solar power).
- Industrial Transformation: Ulanqab aims to transform from a data center hub into a hub for digital economy and blockchain-related industries, representing a significant leap in its economic development.
5. Envision’s Global Plans
Envision Technology has global ambitions:
- The company announced at a French technology summit that by 2030, it plans to build 5 GW of green AI computing centers in desert regions around the world, where wind and solar energy are readily available.
- It intends to replicate the “direct connection to green energy + integrated power grid, load, and storage” model developed in Ulanqab in other countries with high computing demands but limited infrastructure. This would not only help promote China’s green energy technology but also contribute to the development of digital economies in those regions.
In Summary
Envision Technology has established a large-scale AI computing center in Ulanqab, powered by local green energy, addressing the needs of AI companies while reducing costs. Ulanqab benefits from this development as it transitions to a digital economy. Envision’s global strategy aims to share this model, creating a win-win situation for businesses, local economies, and the country’s dual carbon goals.