RedNote, the Shanghai-based lifestyle platform, announced a US$2.2 billion investment to build a 600-MW AI data center in Inner Mongolia, targeting completion in early 2027.
RedNote, the Shanghai-based lifestyle social media platform, disclosed a plan to spend 15 billion yuan on a 600-megawatt AI data center. The project targets completion in the first quarter of 2027 and will be situated in Inner Mongolia.
RedNote revealed on 31 July 2026 that it intends to allocate US$2.2 billion (approximately 15 billion yuan) to construct a new AI-focused data center in China’s Inner Mongolia autonomous region [1]. The announcement specifies a delivery window in the first quarter of 2027 and identifies the Inner Mongolian city of Ulanqab as a potential site [2].
The investment involves RedNote (operating domestically as Xiaohongshu), VNET—one of China’s largest data-center operators—and, indirectly, DeepSeek, a Chinese AI firm recruiting talent in the same region [1]. RedNote’s plan includes a 600-megawatt facility designed to leverage Inner Mongolia’s low electricity costs, a factor highlighted as a strategic advantage for AI workloads [1].
Project Scope and Partnerships
RedNote’s data-center plan calls for a 600-megawatt power capacity, a scale comparable to hyperscale cloud facilities operated by major providers [3]. The budget of US$2.2 billion reflects the capital intensity of constructing a facility capable of supporting large-scale generative-AI models [1].
Negotiations with VNET are reported to be underway, positioning the operator as a potential partner for construction, operation, or both [2]. VNET’s involvement would provide RedNote with access to established data-center expertise and a network of existing carrier-grade infrastructure across China [2].
VNET’s involvement would provide RedNote with access to established data-center expertise and a network of existing carrier-grade infrastructure across China [2].
DeepSeek, while not a direct investor in the RedNote project, is concurrently expanding its AI research presence in Inner Mongolia, recruiting engineers and data scientists for regional development [1]. The co-location of DeepSeek’s talent pipeline and RedNote’s infrastructure underscores the region’s emerging role as an AI hub driven by low power tariffs [1].
Timeline, Location and Delivery Schedule
RedNote Announces $2.2 Billion Investment in AI Data Center in Inner Mongolia
The project timeline sets a target for operational readiness in the first quarter of 2027, allowing a construction window of roughly nine months from the public disclosure [2]. The schedule aligns with China’s broader push to accelerate AI compute capacity ahead of the 2027 mid-term economic plan [1].
Inner Mongolia, and specifically the Ulanqab prefecture, is identified as the preferred location due to its abundant renewable energy resources and government incentives for high-tech facilities [3]. The region’s electricity price, reported to be among the lowest in the country, is a key factor in the site selection, reducing operating expenses for power-intensive AI workloads [1].
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RedNote’s internal documents, cited by multiple outlets, indicate that the company will begin site preparation and procurement of cooling and power infrastructure in August 2026, with major construction phases slated for early 2027 [2].
Immediate Impact on Industry and Workforce
The $2.2 billion data-center investment expands China’s AI compute capacity at a time when domestic demand for generative-AI services is rising [1]. By adding a 600-megawatt facility, RedNote will increase the nation’s total AI-optimized power availability, potentially easing bottlenecks reported by cloud providers earlier in 2026 [3].
Recruitment drives by DeepSeek in the same region suggest a coordinated effort to supply skilled personnel for both infrastructure and AI development roles [1].
For the labor market, the project is expected to create a range of technical jobs, from construction and electrical engineering to data-center operations and AI model deployment [1]. Recruitment drives by DeepSeek in the same region suggest a coordinated effort to supply skilled personnel for both infrastructure and AI development roles [1].
The involvement of a consumer-facing social media platform in hyperscale AI infrastructure signals a diversification of ownership in China’s data-center ecosystem, traditionally dominated by telecom and cloud giants [2]. This diversification may influence future procurement strategies for AI compute, as platforms seek tighter integration between content generation and underlying hardware resources [4].
Key Facts
What: RedNote commits US$2.2 billion to build a 600-MW AI data center in Inner Mongolia.
When: Announcement on 31 July 2026; target delivery in Q1 2027.
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