The utilization of municipal sludge as a seed sludge for initiating the autotrophic nitrogen removal (ANR) process presents a challenge due to the negligible abundance of anaerobic ammonia-oxidizing bacteria (AnAOB). Here, a computational fluid dynamics model was used to simulate sludge volume fraction and sludge particle velocity. A high-height-to-diameter-ratio airlift inner-circulation partition bioreactor (HHAIPBR) was operated for 175 d to enrich AnAOB from municipal sludge, and the performance of the ANR process was investigated. The start-up period of HHAIPBR inoculated with municipal sludge required approximately 69 d. A high nitrogen removal performance, with a mean total nitrogen removal efficiency of 82.1%, was obtained for 1 month. The simulation results validated the presence of sludge circulation and revealed the distribution characteristics of dissolved oxygen inside the reactor, further supporting the promotion of sludge granulation via the high height-to-diameter ratio. Nitrosomonas (3.31%) of Proteobacteria and Candidatus Brocadia (6.56%) of Planctomycetota were dominant in the HHAIPBR. This study presents a viable approach for the industrial cultivation of anammox sludge and the rapid start-up of the partial nitritation-anammox system.