Ulanqab, a city in China's Inner Mongolia Autonomous Region, is facing warnings of water shortages as it prepares to host 89 data centers. The Hong Kong-based Sing Tao Daily reported on August 19 that the operation of these data centers could lead to local water scarcity.
Ulanqab, known for its abundant wind and sunlight, has seen a surge in the construction of wind and solar power plants, resulting in electricity costs that are 30-40% lower than those in China's eastern coastal regions. Since electricity accounts for 60-70% of data center operating costs, building data centers in Ulanqab is economically attractive for companies.
As of the end of June, Ulanqab had secured 89 data center construction projects. Major Chinese IT firms and financial institutions, including Huawei, Alibaba, Tencent, Baidu, ByteDance, and Didi Chuxing, are set to establish data centers in the city. The total investment for these 89 data centers is estimated at 500 billion yuan (approximately $70 billion). The local economy has also benefited, with Ulanqab's GDP increasing by 53% compared to 2020. In the first half of this year, electricity consumption by the large data industry reached 4 billion kWh, an increase of over 80% from the same period last year.
As news of Ulanqab's rise as a 'data center city' spreads, concerns about potential water shortages have emerged. Large data centers using evaporative cooling can consume millions of liters of water daily during the summer, with annual water usage comparable to that of a city with a population of 30,000 to 40,000. Furthermore, Ulanqab is located in a region with low rainfall, and per capita water resources are only one-fourth of the national average.
There are concerns that in the event of a drought, residents may need to reduce their water usage to ensure a stable supply for the data centers. The media has called for stress tests based on extreme drought scenarios and the development of countermeasures.
In response, the Ulanqab city government is taking action. Plans include expanding the use of recycled water and implementing water conservation policies, as well as actively utilizing natural cooling methods that take advantage of the region's cold climate.
* This article has been translated by AI.
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