Mongolia is set to enter the global data center race with a bold initiative powered entirely by renewable energy, leveraging its vast land and favorable climate. The Chinggis Khaan Sovereign Wealth Fund, the country’s first-ever sovereign fund, will play a pivotal role in channeling Mongolia’s mineral wealth into infrastructure, social welfare, and cutting-edge technology projects.

Temuulen Bayaraa, CEO of the fund, highlighted the country’s strategic advantages at the Milken Institute Asia Summit in Singapore, noting that Mongolia’s expansive, sparsely populated terrain provides ideal conditions for hosting large-scale data centers. The fund is exploring the development of special economic zones such as Hunnu City, envisioned as a smart, sustainable urban hub for high-performance computing.

Sovereign Fund Strategy and Scale

Established by law in April last year, the Chinggis Khaan Sovereign Wealth Fund holds approximately $1.4 billion in assets. The fund seeks to tap into surging global demand for cloud computing and artificial intelligence, while also financing large-scale renewable energy projects. The government is currently reviewing the fund’s investment strategy for final approval.

The fund aims to build mega-scaled renewable energy grids and facilities to bolster green energy exports, complementing Mongolia’s renewable energy targets. The government has pledged to increase the share of renewable power in its electricity mix to 30% by 2030, up from 18.3% in 2023, focusing on wind and solar projects.

Goldman Sachs projects that global power demand from data centers will rise 50% by 2027 and 165% by 2030, underscoring the potential for Mongolia to become a major player in clean computing infrastructure.

Minerals to Infrastructure

Mongolia’s economic backbone remains its rich mineral reserves, including coal, copper, uranium, and rare-earth elements. The fund, managed by Erdenes Mongol, a government-owned holding company, plans to use proceeds from these resources to fund infrastructure, social programs, and investments in technology.

Bayaraa emphasized the fund’s role in promoting transparency and equitable wealth distribution. Citizens will be able to track the fund’s sources, allocations, and balances through an accessible app, ensuring public oversight. The fund aims to provide targeted support for education, healthcare, housing, and workforce participation, helping expand the country’s middle class.

Rebuilding Trust and Governance

The sovereign wealth fund also represents a major step in rebuilding public trust in Mongolia’s mining sector. Earlier this year, anti-corruption protests in Ulaanbaatar led to the resignation of former Prime Minister Oyun-Erdene Luvsannamsrai, reflecting public frustration over perceived mismanagement of mineral wealth.

“People felt that mining profits weren’t benefiting their livelihoods,” Bayaraa said. “Now, the sovereign wealth fund is positioned to rebuild that trust, ensuring mineral wealth directly contributes to national development.”

The fund plans to recruit Mongolian diaspora professionals with expertise in banking, investment, and wealth management to strengthen governance and operational capabilities, signaling a commitment to professional management and global best practices.

Mongolia’s Global Ambition

By investing in renewable-powered data centers and strategic energy projects, Mongolia is transitioning from a resource-dependent nation to a global investor in sustainable infrastructure. “For the longest time, Mongolia has been attracting investment into Mongolia,” Bayaraa said. “Now, for the first time, we are becoming an investor to contribute to the global agenda.”

With this approach, the Chinggis Khaan Sovereign Wealth Fund positions Mongolia at the intersection of technology, sustainability, and strategic resource management, setting the stage for long-term economic growth and international engagement.