Datong Computing Power Project: ByteDance's US$614 Million Investment in AI Infrastructure

Tuesday, 14 January 2025, 23:00

Datong computing power is set to receive a significant boost as ByteDance invests US$614 million in a new computing centre. With this investment, the Volcano Cloud (Datong) Technology aims to enhance AI services and big data capabilities. This substantial project will support the demand for high-performance computing in China.
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Datong Computing Power Project: ByteDance's US$614 Million Investment in AI Infrastructure

Datong Computing Power Investment from ByteDance

In a major move, ByteDance has announced an investment of US$614 million (4.5 billion yuan) in a new computing centre in Datong, Shanxi province. This initiative aims to significantly boost computing power, enhancing their AI services such as the ChatGPT-like platform, Doubao.

Project Overview

The Volcano Cloud Taihang Computing Centre II Phase project will span an impressive 205,013 square metres. It will include six two-storey data centre buildings and a six-storey integrated facility, estimated to house 15,604 server cabinets.

High-Performance Computing Needs

  • High-Performance Computing is vital for training large language models (LLMs) and processing extensive data efficiently.
  • Despite challenges from US export restrictions, China's tech firms are leveraging local chips.
  • ByteDance's Doubao has seen a surge in popularity, with 51 million active users, yet monetization strategies remain unclear.

Local Economic Impact

The centre, located in Guangling county's Economic Development Zone Big Data Park, aims to bolster the local big data industry's growth. Reports indicate that the computing power in Datong ranks third nationally.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.

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