Key facts
- China's Inner Mongolia is rapidly building data centers, with Ulanqab planning 89 facilities.
- AirTrunk plans to increase its committed data center capacity in Japan to over 1 gigawatt.
- Demand for data centers in Asia-Pacific was 28 GW last year and is forecast to triple by 2030.
- Huawei and Qualcomm entered a cross-licensing deal that includes Qualcomm purchasing some of Huawei's U.S. patents.
- Cyberattacks have impacted businesses in Japan and South Korea, exposing millions of customer records.
Asia is experiencing a significant boom in artificial intelligence infrastructure development, leading to a rapid expansion of data centers and increased demand for semiconductors. In China, the Inner Mongolia region, particularly the city of Ulanqab, is emerging as a major hub for data center construction, leveraging abundant electricity and cheap land. Ulanqab has committed 15 GW of computing capacity and plans for 89 data centers, making it one of Asia's fastest-growing hubs.
Meanwhile, Japan is also a key focus for data center growth, with hyperscale operator AirTrunk planning to invest $30 billion over the next five years to triple its capacity to over 1 gigawatt. This expansion is driven by strong customer demand for AI workloads, despite higher costs in the market.
The surge in demand is putting pressure on the global semiconductor supply chain, with shortages reported for everything from DRAM to other types of chips and components. Executives and engineers are working through holidays to meet client orders.
In a significant development for intellectual property, China's Huawei has entered into a cross-licensing agreement with Qualcomm, covering 5G, AI, and networking technologies. This deal, which involves Qualcomm purchasing some of Huawei's U.S. patents, will trigger a U.S. regulatory review. The patents relate to Huawei's Tau Scaling Law, developed to circumvent U.S. export controls.
Concerns are also mounting regarding the role of AI in amplifying cyber threats. Businesses across Japan and South Korea have been targeted by major cyberattacks, resulting in the exposure of millions of customer records. Banks, retailers, and service providers were among the affected entities.