The new cloud center will exist in the Liangjiang New Area industrial zone.  The cloud offering will focus on businesses related to open platform, e-commerce and data processing, the Chongqing Economic and IT Commission said in a statement.

“Under the deal, Tencent will establish a new company with a registered capital of no less than $30 million. The company will be responsible for the construction and operation of the cloud computing center and a research and development base.”

Cloud computing in China will grow quickly.  Many Chinese businesses are under-automated, and cloud computing may provide the price-points they have been waiting for.

However, there are other issues to be considered, such as the inevitable government intrusion into China-based public clouds.  Also, there are issues around selling these services outside of China.

This is perhaps the first in a long line of cloud computing centers built in China.