ByteDance, the parent company of TikTok, has announced plans to invest $614 million in the construction of a new data center in Datong, located in Shanxi Province, China. This move is aimed at expanding the company’s computational capabilities to support its AI-driven initiatives, including its ChatGPT-like service, Doubao.
ByteDance’s Strategy to Boost AI and Compute Capacity
News reported by South China Morning Post (SCMP) , ByteDance is focusing on increasing its compute power to better support AI-driven services, particularly the Doubao platform, which has gained significant attention for its AI-powered capabilities. The new data center will be situated in Guangling County’s Economic Development Zone Big Data Park, a strategic location designed to house the company’s growing infrastructure needs.
Overview of the Volcano Cloud Taihang Computing Centre II Project
The data center project, known as the Volcano Cloud Taihang Computing Centre II Phase, will cover an area of 205,013 square meters (approximately 2.2 million square feet). According to government documents published on the Shanxi provincial website, the center will feature six two-story data center buildings, alongside a six-story integrated facility.
The data center’s design will include 12,604 server cabinets, each with a 12kW capacity, and 510 network cabinets, which are expected to support ByteDance’s increasingly data-intensive operations.
Timeline and Phases of the Data Center Construction
Construction of the data center began in May 2023, with the first phase already nearing completion. This phase includes the development of four of the six planned data center buildings. As the project progresses, additional phases will focus on expanding the facility to its full capacity.
ByteDance’s Expansion and Infrastructure Investments
ByteDance is significantly investing in its data infrastructure and technology. In addition to this $614 million data center project, the company is working with ChinData, which operates a data center at the Taihang Mountain Energy and Information Technology Industrial Campus near Datong. ByteDance is also continuing to expand its cloud and AI capabilities to support future growth.
The Volcano Cloud data center will play a crucial role in ByteDance’s ambitions, providing the computational resources necessary to power its AI services, including Doubao and other emerging platforms.
Global and Domestic Context for ByteDance’s AI Investments
The move comes as ByteDance continues to invest heavily in AI infrastructure globally. The company has also committed to purchasing a large quantity of Nvidia chips, with plans to spend $7 billion in 2025. This will make ByteDance one of Nvidia’s largest global customers, further solidifying the company’s commitment to enhancing its AI and data infrastructure.
Despite geopolitical challenges, including concerns over TikTok’s future in the U.S., ByteDance is pressing ahead with its ambitious AI and data center plans. In particular, its $20 billion AI chip and infrastructure spending for 2025 highlights the company’s strategy to bolster its technological edge.
ByteDance’s Volcano Cloud Division and Future Plans
Volcano Cloud, a subsidiary of ByteDance, was established in December 2022 to oversee the company’s expanding cloud and data center operations. The division’s focus is on building a robust data infrastructure to support ByteDance’s growing AI capabilities. This new data center in Datong represents a significant step forward in these efforts, reinforcing the company’s position in the highly competitive AI and cloud markets.
FAQ Section
1. Why is ByteDance investing in a new data center?
ByteDance is investing in a new data center to increase its compute capacity and support AI services, particularly its ChatGPT-like service, Doubao. This infrastructure will enable the company to meet the growing demand for AI-driven applications.
2. Where is ByteDance’s new data center located?
The new data center will be located in Guangling County’s Economic Development Zone Big Data Park, Datong, Shanxi Province, China.
3. How large will ByteDance’s new data center be?
The data center will cover 205,013 square meters (approximately 2.2 million square feet) and will include six two-story data center buildings and one six-story integrated facility.
4. What are the phases of ByteDance’s data center development?
The development will take place in multiple phases, with the first phase involving the construction of four data center buildings, which is nearing completion. Future phases will expand the campus to its full capacity.
5. What other investments is ByteDance making in AI infrastructure?
In addition to the $614 million data center investment, ByteDance is spending $7 billion on Nvidia chips in 2025, making it one of Nvidia’s largest customers. It is also expected to spend over $20 billion next year on AI chips, data centers, and other infrastructure.
