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.
