DeepSeek is gearing up to establish a large-scale data center in Ulanqab, Inner Mongolia, marking its move from purely developing AI models to managing its own computing infrastructure. Job listings dated April 2, 2026, for senior delivery managers and server maintenance engineers confirm this strategic push.
The choice of Inner Mongolia isn’t random. The area offers cheap electricity, a cool climate that slashes cooling costs, and vast land availability critical factors for housing power-hungry AI data centers. plus DeepSeek taps into existing telecom infrastructure and a skilled technical workforce already present in the region.
Scaling Up for DeepSeek-V4
All of this aligns with the upcoming launch of DeepSeek’s V4 model around April 24, 2026. Expected to use a Mixture of Experts architecture, this model could reach up to 1.6 trillion parameters, with 49 billion active ones during operation. Running such a massive AI at inference scale demands a powerful and dedicated physical compute backbone.
DeepSeek faces supply chain challenges due to US export restrictions limiting access to top-tier Nvidia GPUs, widely used in Western AI training. Despite that, the company's infrastructure expansion signals confidence in overcoming hardware hurdles and scaling its AI capabilities domestically.
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