ExclusiveRedNote eyes US$2.2 billion data centre as China ramps up AI infrastructure, source says

China’s DeepSeek is also recruiting for jobs in Inner Mongolia, the location of the buildout, as it emerges as an AI hub due to low power costs

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Ben Jiangin BeijingPublished: 4:00pm, 31 Jul 2026Updated: 4:09pm, 31 Jul 2026RedNote, the Chinese lifestyle social media platform also known as Xiaohongshu domestically, is looking to build out a large data centre facility in Inner Mongolia autonomous region, according to a source, in a move that comes amid China’s massive artificial intelligence (AI) infrastructure push.

Shanghai-based RedNote is planning the 600-megawatt project, either in Ulanqab proper, which is known for its wind and renewable energy projects, or west of the city, with a budget of around 15 billion yuan (US$2.2 billion) excluding semiconductor costs, according to an individual who requested anonymity due to the private nature of the information.

The National Development and Reform Commission (NDRC), China’s top economic planner, expects a total of 4 trillion yuan investment in national computing network buildout over the next five years during the 15th five-year plan, said Jiang Yi, a spokesperson for the NDRC, at a press briefing on Friday.

With investment in computing infrastructure coming mostly from enterprises, the Chinese government sees major room for private investment in the sector, Jiang said during the briefing, adding that the agency would strengthen guidance and support to create a more favourable environment for private investors.

RedNote’s had been in talks to VNET, one of China’s largest data centre operators, on the Ulanqab data centre buildout and was targeting delivery in the first quarter of 2027, the person said.

RedNote and VNET did not immediately respond to a request for comment on Friday.