Mongolia to join the madness of the data center with the sovereign wealth fund Chengis Khan

Mongolia, which has long relied on mining, plans to build renewable -powered data centers because it is the first sovereign wealth fund to direct its mineral wealth to social care and infrastructure.

“We have a huge land with a very favorable climate for activities such as (hosting) databases,” Timolin Payara, CEO of the Sovereignty Fund, told CNBC on the sidelines of the Milkin Institute in the Asia Institute in Singapore on Friday.

She added that the non -coastal Asian nation is developing special economic areas dedicated to data centers, in reference to Hono This is imagined as a smart and sustainable urban city.

the The sovereign wealth fund Chengais KhanThe law created in April last year, has $ 1.4 billion of reserves and seeks to take advantage of the global demand for computer energy and clean energy. Its investment strategy is still awaiting the government’s review and final approval.

A group of Asian countries accelerated efforts to develop databases this year amid the increasing demand for cloud computing and artificial intelligence. Japan, Singapore and Malaysia They intensified investments in building their data center capacity.

the The last explosion in the burdens of artificial intelligence work Globally requires wide computing power, electrical energy, cooling and network infrastructure. Goldman Sachs expects global energy demand From data centers to a 50 % increase by 2027 and by 165 % by 2030.

Regardless of the data centers, part of the fund’s revenue will also be used to build “huge -range” renewable energy networks and projects, as part of the country’s efforts to enhance green energy exports to neighboring countries. Mongolia, which is located between Russia and China, promoted its relations with both the great powers to the level “Comprehensive strategic partnerships” In recent years.

The plan comes at a time when the Mongolian government pledged to increase the renewable energy share, especially energy and solar energy, in the country’s power to 30 % by 2030, An increase of 18.3 % In 2023.

Bayara said that investment strategies in the fund will also focus on facing risks associated with price fluctuations in commodities. The Chatgis Fund is managed by Erdenes Mongol, a government holding company that has a stake in mining assets in the country.

The population, which includes about 3.5 million people, has benefited from a boom in prices for its rich supplies of critical minerals, including coal, copper, uranium and uranium elements.

The Mongolian government was exposed to increasing pressure to distribute its mineral wealth among its people and put an end to corruption in the sector. Anti -corruption protests in its capital, UNANASAR, earlier this year Ergane Lofanamarrarri game to step down As prime minister.

“People did not feel that mining contributed to wealth and improving their livelihoods with the erosion of natural resources. But now the sovereign wealth box is placed in a way to rebuild that confidence,” said Bayara.

She added that the fund will play a major role in the country’s development plan, which aims to provide more transparency and fairness in the distribution of wealth, by obtaining mineral wealth to be “managed and frankly in a way that is to support people, their educational needs, financing, educational needs, health care and housing.”

“The decisive work is to build the governance form (for the fund),” she added. Citizens will be able to access the details of the fund sources, allocate it and balance. “It is a very targeted intervention to expand the middle class and pay the participation of the labor market,” she said.

The Fund leader plans to employ members of the Mongolian diaspora with experience in banking and investment industries and wealth management to return home and help manage the fund.

“For the longest time, Mongolia attracts investment in Mongolia. On the first day, we have become an investor to contribute to the global agenda,” said Bayara.