Mongolia is hoping to lure data center developers to the Asian nation.

“We have a massive land with a very favorable climate for activities like [hosting] data centers,” Temuulen Bayaraa, CEO of Mongolia’s Chinggis Khaan Sovereign Wealth Fund, told CNBC last week.

The nation is developing special economic zones dedicated to data centers, she added, referring to the Hunnu City smart city project 50km (31 miles) outside the capital, Ulaanbaatar.

Founded last year, the Chinggis Khaan Sovereign Wealth Fund (aka the Genghis Khan National Wealth Fund) has $1.4 billion in reserves and is looking to lure investors in with available clean energy.

The fund is managed by Erdenes Mongol, a government-owned holding company that owns a share in the country’s mining assets.

Set up in 2024, Hunnu is set to span 31,000 hectares. It aims to tap into the region’s geothermal energy reserves for its power.

Mongolia's data center market is very small and concentrated around the capital city.

According to Data Center Map, Mongolia has just two data centers, both located in Ulaanbaatar: the state-owned National Government facility, and one from local telco Unitel.

Uptime lists five facilities in Mongolia, all with Tier II certification: two each from XacBank and Khan Bank, and one from the Bank of Mongolia. All five are located around Ulaanbaatar.

There are others, with Shunkhlai Group’s S Systems and Newcomm Group’s Mobinet also claiming to operate their own facilities in the country. Several other telecoms firms also operate within Mongolia.

Mongolian IT firm ICT Group JSC has also previously been said to be developing a facility in the country.