Accelerating innovation in digital intelligence technologies such as artificial intelligence, breaking through foundational theories and core technologies, and strengthening efficient supply of computing power, algorithms, and data.

For Ningxia Xiyun Computing Technology Co., Ltd., the winter at the end of 2020 was particularly cold. In the vast data center, indicator lights were sparse, and nearly half of the server cabinets that once hummed with operation sat empty. “The cabinet occupancy rate plummeted, and revenue shrank significantly,” recalled the CEO of Xiyun Computing.

Located in Zhongwei City, Ningxia, Xiyun Computing was one of the second batch of companies to build data centers in the area. With an average annual temperature of only 8.8 degrees Celsius, natural conditions allowing significant energy savings through natural air cooling, and favorable geographical advantages, the company built a “digital warehouse” primarily for data storage and hosting. Due to the rapid development of mobile internet, there was strong market demand for this service. However, as more and more data centers were built across the country, competition intensified, and Xiyun Computing faced the challenge of losing customers.

Should they continue in the traditional business, competing for existing customers with lower prices, or find a new path and explore a “blue ocean”? The team faced a difficult choice.

After the launch of the “East Data, West Computing” project, Zhongwei seized the opportunity to build a national hub node for the integrated computing power network. At the same time, artificial intelligence accelerated its development, creating massive and urgent demand for “intelligent computing” in areas like large model training, autonomous driving simulation, and scientific computing. “We gradually realized that the value of a data center must not stop at ‘storage,’ but must move toward the higher dimension of ‘computing,'” said the CEO. From then on, Xiyun Computing began in-depth research into the intelligent computing industry and planned its transformation.

“The first few years of transformation were the hardest; you could say it was like ‘cutting off one’s own arm,'” the CEO admitted. “We had to invest heavily in expensive equipment to build a completely new intelligent computing platform. To free up space and resources for our self-built computing cluster, we even had to phase out our existing data storage customers. In 2022, revenue suddenly dropped from 30 million yuan to less than 10 million yuan.”

“Giving up relatively stable income to gamble on an uncertain future—was it worth it?” Facing doubts, the team identified the trend and proceeded without hesitation.

Based on their observations of the AI industry, they found that computing demand was rapidly extending from single model training to inference applications. So, the company not only deployed training clusters but also raced ahead to build dedicated computing pools for inference scenarios. In terms of infrastructure, they stepped outside the traditional data center framework and custom-designed a new generation of AI data centers tailored to the high density and high power consumption of AI computing.

To provide developers with flexible and convenient cloud computing services, Xiyun Computing launched its self-developed “Danmo” intelligent computing cloud platform in 2024. Small and medium-sized enterprises, research institutions, and even individual developers can rent intelligent computing services on demand through this platform. Explaining the name, the CEO said, “‘Dan’ means AI ‘alchemy,’ and ‘Mo’ is a homophone for ‘desert.’ ‘Danmo’ symbolizes refining affordable computing power from the western desert.”

“We have formed close business partnerships with AI large model companies, as well as upstream and downstream enterprises in the AI industry chain, including finance, healthcare, autonomous driving, and data annotation. In 2025, our revenue reached nearly 200 million yuan,” the CEO said. “For a team of fewer than 100 people, this achievement is the best reward for daring to transform and persisting in innovation.”

“The ’15th Five-Year Plan’ proposal calls for deepening the construction of Digital China,” said the Secretary of the Zhongwei Municipal Party Committee. “We will build a high-standard data center cluster, construct a high-quality national data industry agglomeration area, develop new quality productive forces tailored to local conditions, and create new development advantages.”

“We will continue to uphold the concept of building a prosperous computing ecosystem, deepen cooperation with all parties, act as the ‘chain leader’ of Ningxia’s digital information industry chain, and help build new industrial advantages,” the CEO said.

Cultivating More Digital Economy “Partners”

Zhongwei in Ningxia seized the opportunity of the “East Data, West Computing” project, turning the Gobi Desert into a “hot land” for digital economy development.

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Zhongwei City

Zhongwei City, located in China’s Ningxia Hui Autonomous Region, is known for its strategic position along the ancient Silk Road and its famous Shapotou scenic area, where the Yellow River meets the Tengger Desert. Historically, it served as a key transportation and trade hub, and the region is home to the Gao Temple, a historic Taoist complex built during the Ming Dynasty. Today, Zhongwei is celebrated for its desert tourism, railway heritage, and efforts in desertification control.

Ningxia

Ningxia is an autonomous region in northwest China known for its unique blend of Chinese and Islamic cultures, as well as its arid landscapes and the Yellow River irrigation system. Historically, it was part of the ancient Silk Road and later became a key frontier region under various Chinese dynasties, including the Tang and Ming. Today, it is famous for the Western Xia (Xixia) imperial tombs, which mark the legacy of the Tangut Empire that ruled the area from the 11th to 13th centuries.

Gobi Desert

The Gobi Desert is a vast, cold desert spanning northern China and southern Mongolia, known for its extreme temperatures and unique landscapes of dunes, mountains, and steppes. Historically, it was a crucial part of the Silk Road trade network and is famous for its fossil discoveries, including dinosaur eggs and remains. The desert has also been home to nomadic herders for centuries, who have adapted to its harsh conditions.

East Data, West Computing

“East Data, West Computing” refers to China’s strategic initiative to balance digital infrastructure, with data storage concentrated in the eastern regions and computing power in the western regions. Launched around 2022, this project aims to optimize resource allocation by leveraging the West’s abundant renewable energy and cooler climates for energy-intensive data processing. It supports China’s digital economy growth while addressing regional development disparities and energy efficiency.

Digital China

“Digital China” refers to the national strategy and vision of China to accelerate the development of digital technologies, such as big data, artificial intelligence, and cloud computing, to drive economic growth and social modernization. Officially proposed in the 2010s, it builds on China’s rapid internet expansion and aims to integrate digital solutions into every sector, from governance to daily life. This initiative reflects China’s broader goal of becoming a global leader in the digital economy and technological innovation.

Danmo intelligent computing cloud platform

The Danmo Intelligent Computing Cloud Platform is a Chinese-developed cloud computing infrastructure designed to support artificial intelligence and big data applications. It integrates advanced computing resources and intelligent algorithms, aiming to accelerate digital transformation across various industries. While specific historical details are limited, the platform reflects China’s broader push toward technological self-sufficiency and leadership in AI and cloud computing innovation.

AI data centers

AI data centers are massive facilities housing thousands of computer servers and networking equipment designed to process, store, and distribute the vast amounts of data required for artificial intelligence applications. Their modern history began in the early 2000s with the rise of cloud computing, but they have exploded in scale and importance since the 2010s due to the rapid growth of machine learning, big data, and generative AI. Today, these centers are critical infrastructure for tech companies, often consuming enormous amounts of electricity and water, and are increasingly located in regions with abundant renewable energy or favorable climates for cooling.

Ningxia’s digital information industry chain

Ningxia’s digital information industry chain is a rapidly growing sector in China’s northwestern region, leveraging the area’s abundant solar and wind energy to power data centers and cloud computing services. Historically, Ningxia was a remote, less-developed area, but since the 2010s, the government has transformed it into a national hub for big data and smart industries, with the Zhongwei data center cluster as a key development. This initiative aims to boost economic diversification and support China’s digital economy goals.