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Home AI & Quantum Computing

Strategic Alliance Powers Next-Generation AI Infrastructure Development

Felix Baarz by Felix Baarz
December 12, 2025
in AI & Quantum Computing, Asian Markets, Industrial, Renewable Energy, Tech & Software
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Chindata Holdings Stock
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A significant expansion of the strategic partnership between Chindata Holdings and HEC Group is set to drive the creation of multi-gigawatt-scale artificial intelligence clusters across two key Chinese regions. The collaboration directly leverages a recent multi-billion dollar ownership change and focuses on integrating hyperscale data centers with industrial production and renewable energy sources.

A Framework for Large-Scale AI Hubs

The partners have outlined ambitious plans for facilities in Shaoguan, located in Guangdong province, and Ulanqab, in Inner Mongolia. These projects are designed to support high-performance computing needs, specifically for AI workloads, through a vertically integrated approach that combines power, manufacturing, and computing.

In Shaoguan’s Qujiang Economic Development Zone, the first phase involves constructing a carbon-neutral data center campus. The initial build-out will cover approximately 132,000 square meters and is planned to deliver 150 MW of IT capacity. Accompanying this development will be enhancements to grid infrastructure and renewable energy access. Furthermore, the partnership includes establishing upstream production for electronic materials to support the manufacturing of AI servers and advanced cooling systems.

The Ulanqab project envisions a gigawatt-scale, vertically integrated AI industrial park. A defining feature will be a private transmission grid dedicated to supplying the entire operation with green power directly. HEC Group will contribute its specialized expertise in areas such as electrode foil, fluorinated cooling fluids, and power electronic components. Chindata brings its proven experience in building hyperscale data centers and implementing liquid cooling solutions to the venture.

Should investors sell immediately? Or is it worth buying Chindata Holdings?

Ownership Shift Catalyzes Deeper Cooperation

This intensified partnership follows major changes in Chindata’s corporate structure. The company was delisted from Nasdaq in 2023 and taken private. Subsequently, in September 2025, Bain Capital sold its stake to a consortium led by Guangdong HEC Technology in a deal valued at approximately $4 billion. This transaction is recognized as the largest merger and acquisition deal to date within China’s data center sector. The current collaborative projects are a direct outcome of this new ownership alignment, effectively merging Chindata’s data center operational prowess with HEC’s industrial technology capabilities.

The initiatives also align with China’s national “East Data, West Computing” strategy, which aims to optimize the geographical distribution of computing resources. The combination of liquid cooling technology, specialized local electronics production, and access to regionally abundant renewable energy is particularly crucial for managing the high power density demands of advanced AI computing.

Implementation and Future Scale

The immediate focus remains on the foundational construction phases: the 150 MW development in Qujiang and the establishment of the private green energy grid in Ulanqab. Successful execution will depend on timely upgrades to power networks, the realization of renewable energy plans, and further industrial integration. These initial projects establish a framework for scalable, energy-efficient AI infrastructure in both regions, with a long-term roadmap targeting multi-gigawatt capacity expansion.

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Felix Baarz

Felix Baarz

My name is Felix Baarz, and I look back on over fifteen years of experience as a business journalist. I have always been fascinated by the mechanisms and dynamics of global financial markets as well as the complex economic and political interconnections that shape our world. With this passion, I have made a name for myself as an expert on international financial markets and dedicate myself with great commitment to making even the most complex topics understandable and accessible to my readers. My roots lie in Cologne, where I was born and raised. Early on, my curiosity about economic topics and international developments sparked my interest in journalism. After completing my studies, I began my career as a business editor at a respected German trade publication. Here I laid the foundation for my professional career, but my curiosity soon drew me out into the wider world. A turning point in my life was moving to New York, where I lived for six years and gained insight into leading media houses. In this vibrant metropolis, I was able to report firsthand from the heart of the global financial world. From daily developments on Wall Street to major economic policy decisions that make waves worldwide, I had the opportunity to write about central topics that move people and markets alike. This time shaped my perspective and sharpened my view of global interconnections.

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