Datong Transforms from Coal Hub to Computing Powerhouse with AI Advancements

As the sun set over JD Logistics' customer service center in Datong, hundreds of customer service representatives efficiently managed user queries, thanks in large part to advancements in artificial intelligence. Team leader Peng Guoshuai emphasized the transformative impact of AI on their operations, noting that processes like updating delivery addresses have been streamlined through mini-apps, reducing the need for manual coordination and enhancing customer satisfaction.

The center has reported that nearly 30 percent of the 20 million calls received the previous year were resolved using AI technology. The underlying computing resources for these operations are provided by JD Cloud's data center located in Lingqiu County, which began its operations in October 2023, with two more phases currently being developed. This transition highlights Datong's efforts to redefine its economic landscape, moving away from its traditional coal-based identity.

Historically referred to as the "Ruhr of China," Datong produced a staggering 162 million tonnes of raw coal last year. However, with the depletion of high-quality coal reserves, the city is seeking to diversify its economy by embracing the computing sector. Datong is strategically positioned for data centers, benefiting from a moderate annual average temperature of 6 degrees Celsius, which allows for natural cooling and leads to significant energy savings in server operations.

In 2018, Chindata Group selected Datong as the site for its expansive data center campus due to its efficient cooling capabilities that reduce electricity costs considerably. Maintenance manager Deng Wenying noted that their average Power Usage Effectiveness (PUE) has fallen to an impressive 1.185, surpassing national standards. Various green energy resources and low electricity rates further enhance the attractiveness of Datong as a destination for technology investments.

The city's location, just 200 kilometers from Beijing, results in low latency connections to the capital's computing network, making it a prime choice for tech companies. Significant firms such as JD.com, ByteDance, and ZDATA Technologies have already established their computing operations in Datong. According to recent assessments, Datong now ranks third in the country for urban computing power.

Investments in infrastructure and technology are substantial, totaling 49.1 billion yuan for servers and 28.2 billion yuan for supporting services. As emphasized by Ning Wenxin, Party chief of Datong's economic and technological development zone, the municipal government is committed to implementing policies and providing talent support to foster this growth. In line with this vision, the Datong Vocational College of Data Technology was founded in May to train professionals in big data and AI, further solidifying the city's ambition to become a national center for computing and data services.