Observed Signal · Oct 15, 2026 · Policy Update · Source: Hello China Tech · Impact: 2/5 · Sentiment: Neutral
China's Ulanqab Data Centers: Who Pays for the Grid Wait
In Ulanqab, a Chinese AI data center hub, grid infrastructure is still under construction, causing delays between completed data centers and their power connection. Operators like GDS invest before service begins and collect no fees until billing starts. The Financial Times reports about 15 GW of committed capacity, while Goldman Sachs counted 12.5 GW. Data centers used 3.27 billion kWh in H1 2026, up 89.5% year-over-year. Power costs in Ulanqab are about Rmb 0.358 per kWh, much cheaper than Beijing's Rmb 0.80. However, substation construction can take three to five years, far longer than the 12 months to build a data center hall. The article examines the financial risk operators carry during these waits.
The article highlights infrastructure bottlenecks in a major Chinese AI data center hub, affecting the cost and timeline of AI infrastructure deployment, which is relevant to the AdTech/AI industry's reliance on cloud and data processing capabilities.
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Key Takeaways & Evidence Grounding
- About 15 GW of data center capacity has been committed in Ulanqab, according to the Financial Times.
- Goldman Sachs counted 12.5 GW of operating and planned capacity in June, up from 3.3 GW in July 2025.
- Data centers in Ulanqab used 3.27 billion kWh in H1 2026, up 89.5% year-over-year.
- GDS invests in infrastructure before service begins and typically collects no fees until billing starts.
- Substation construction can take three to five years, while a data center hall takes about 12 months.
Connected Companies & Entities
2 Entities mapped“Goldman Sachs counted 12.5GW of operating and planned capacity in June.”
“Alibaba Cloud has cited Rmb 0.32 to 0.35 per kWh.”
Ontology Mapping & Concepts
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