Mongolia positions itself as Asia’s emerging data center hub with $2 billion investment push

Mongolia wants to become the place where the world stores its data. During the UNCCD COP17 conference in Ulaanbaatar, running from August 17 to 28, the government rolled out a package of incentives designed to lure data center investors: tax relief, cheap energy, abundant land, data security guarantees, and naturally cold weather that slashes cooling costs. The target is ambitious. Mongolia is aiming to attract at least $2 billion in investment for AI and green data center initiatives, a figure that would represent a meaningful chunk of new capital for a country whose economy has historically revolved around mining and livestock. The pitch: nature’s air conditioning and sovereign backing The centerpiece of the strategy is the Hunnu City smart city project, a 31,000-hectare development located roughly 50 km from Ulaanbaatar. The site is planned to run on geothermal and other renewable energy sources, positioning it as a “green” data center zone. Backing the initiative is the Chinggis Khaan Sovereign Wealth Fund, which currently manages reserves of $1.4 billion. The fund is actively seeking data center developers to participate in the Hunnu City project and related infrastructure. Mo...