Caixin
Apr 26, 2017 01:39 PM
BUSINESS & TECH

Tencent Cloud Servers Float Into Five New Global Locations

(Beijing) — Leading internet company Tencent Holdings Ltd. said on Wednesday it will more than double the number of global data centers for its cloud computing service this year as it plays catch-up with rival Alibaba in developing the global market.

Tencent said it opened the first of the five new centers this week in Silicon Valley, according to a company announcement. The other four new centers will be in Mumbai, India; Seoul, South Korea; Moscow; and Frankfurt, Germany.

The additions will bring Tencent’s count of such offshore centers to eight, complementing its three existing facilities in Hong Kong, Singapore and Toronto. Tencent added the Hong Kong and new Silicon Valley centers are both slated for expansion this year.

Such centers usually host websites and offsite services for local client companies, which prefer to have their virtual products based on servers in or near their home market to improve download speeds. Typical customers for such centers include operators of online games, financial companies and web-based video services.

“We want to enhance our overseas cloud capability to meet the rising demand from companies around the world as they look for fast, reliable, secure and cost-effective services during the global expansion and migration to the cloud era,” Tencent Cloud Vice President Rita Zeng said.

Tencent said revenue from its cloud unit more than tripled in 2016 from the previous year. The company is one of a growing number in China trying to develop the fast-growing and potentially lucrative domestic market for cloud services, alongside such domestic players as Huawei Technologies Co. Ltd. and global giants like Amazon.com Inc.

Tencent’s global expansion mirrors a similar move by China’s other leading internet company Alibaba Group Holding Ltd. Alibaba announced the opening of four new cloud centers late last year, bringing its global total to 14.

Late last year, Tencent also announced its own new cloud tie-up with U.S. software giant Oracle Corp. Under that deal, Tencent agreed to act as local partner for rolling out Oracle's cloud-computing product in China, with an eventual aim of integrating the U.S. company’s products into its own popular WeChat instant messaging platform.

Contact reporter Yang Ge (geyang@caixin.com)

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