China builds massive 800-megawatt AI data center campus to rival US Stargate project

China is constructing an expansive 800-megawatt AI data center campus in Inner Mongolia, potentially challenging America's Stargate project, according to a report by SemiAnalysis. The Envision company has completed the initial 120-megawatt phase of the Galaxy AI data center campus within a year, costing one-fifth of comparable US projects.

However, establishing the buildings is just part of the challenge. To generate sufficient electricity, Envision is building its own wind farms and battery storage alongside the computing facility. Unlike US developers relying on gas turbines due to grid constraints, Envision utilizes wind farms, battery storage, and dedicated power infrastructure.

The Galaxy data center, located in Ulanqab, Inner Mongolia, will provide up to 800 megawatts of IT capacity by the end of 2027, matching the Stargate campus in Abilene, Texas. Envision is installing over 100 gigawatts of wind turbines, with future farms providing over 60% of the electricity needed by the first two phases. To address power fluctuations, the company is adding four-hour battery storage.

The Chinese facility also features innovative solid-state transformers converting 10kV AC to 800V DC, reducing conversion stages and improving efficiency. The campus employs a shared water loop for both cooling and electricity distribution, a design that simplifies infrastructure but depends on local climate conditions. China's AI infrastructure expansion is driven by cheap electricity, available land, and abundant wind resources.

However, China's access to advanced AI accelerators remains a separate constraint due to US export restrictions limiting Nvidia's chip availability.