Tencent to build Chongqing cloud computing center

Internet company, Tencent, has signed a deal to build west China’s first cloud computing center in Chongqing, local authorities said on Friday.

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.