Chinese renewable energy leader Envision enters AI data center arena
Envision Group, a leading Chinese renewable energy firm, has activated the first stage of a massive gigawatt-scale data center in Inner Mongolia's Ulanqab city. The company announced the 120-megawatt project marks an expansion into the artificial intelligence industry, with ambitions to expand the facility to a total of 2 gigawatts of capacity.
Located in a region with strong wind energy resources and a cold climate averaging 4C (39F) annually, the site offers advantages for energy efficiency. Envision plans to power the Galaxy Campus data center with 80% clean energy, drawn directly from wind farms it operates nearby via dedicated transmission lines.
Chinese data center industry faces rising competition
The data center market in China has mainly been controlled by telecom operators, specialized developers, and major internet companies like Tencent Holdings Ltd. and Alibaba Group. Envision's entry into the field adds a new contender with deep expertise in clean energy. Other AI firms such as DeepSeek and Z.AI are also constructing large-scale data center projects in Ulanqab, highlighting the region's appeal for AI infrastructure.
A recent government policy requiring 80% of data center power to come from green sources creates a strong synergy with Envision's existing renewable energy operations. The company's renewable energy platform spans wind turbine manufacturing, battery storage, and energy systems — assets that give it a unique competitive advantage.
Envision aims for global AI infrastructure leadership
This data center initiative is a central element of Envision's long-term strategy to build 5 gigawatts of AI data center capacity worldwide by 2030. The firm will provide the power infrastructure and supporting systems, but will not manage the data processing. Instead, technology companies will function as tenants, leasing the facilities and deploying their own chip clusters for computing.
Envision is leveraging battery storage as a backup power solution, breaking from the traditional reliance on diesel generators. This shift aligns with the company's broader strategy to reduce carbon footprints and reinforce its role in the clean energy transition. The Galaxy Campus project represents a pivotal step in Envision's expansion into cloud computing and AI services, combining energy production with cutting-edge digital infrastructure.
Z.AI, formerly known as Zhipu, is pursuing a separate 1 gigawatt project in the area that will use only Chinese-made chips, further intensifying competition in Ulanqab. Envision's strategic location and renewable energy advantages position it well to capitalize on the growing AI infrastructure market.