China Telecom Global sets sights on data centres for belt and road region

PUBLISHED : Tuesday, 25 April, 2017, 10:44pm
UPDATED : Monday, 01 May, 2017, 3:34pm

State-owned China Telecom Global has its sights set on expanding its data centre business across the ‘One Belt, One Road’ region, after signing an agreement with UK data centre owner Global Switch and Chinese data centre operator Daily Tech.

Under the agreement, the three companies will co-operate on expanding into new markets and jointly provide data centre, network and systems integrations services, enabling China Telecom Global to offer data centre capacity for its Chinese clients on an international scale.

“At China Telecom Global, we are committed to developing world-class network services to fulfil our customers’ demands for globalisation and digitalisation,” said Deng Xiaofeng, chief executive of China Telecom Global at a press conference on Tuesday. “This strategic partnership is a collaboration to provide our customers access to a global network, cloud computing service solutions and a series of value-added services.”

Deng said that the company is exploring market opportunities to expand into more belt and road markets together with its partners.

“On a global scale, [this partnership] will enable the expansion of Chinese companies overseas in close step with China’s ambitious belt and road initiative,” said billionaire David Reuben, one of the major shareholders in Global Switch. Reuben added that the partnership will underpin international companies’ ability to be more connected with China.

“In reality, this partnership is an excellent model of the East and West working successfully together,” he said.

Global Switch is currently developing a 45,000-square metre data centre complex in Hong Kong’s Tseung Kwan O Industrial Estate, due for completion next year. China Telecom and Daily Tech are scheduled to take up space in two of the five buildings in the complex.

Data centres are secure, temperature-controlled facilities built to house large-capacity servers and data storage systems, and are equipped with multiple power sources and high-bandwidth internet connections.

They are largely used to host and manage cloud computing operations. Cloud services enable companies to buy, lease or sell software and other digital resources online, just like electricity from a power grid.

Last December, a Chinese consortium called Elegant Jubilee, led by Jiangsu Sha Steel Group, paid £2.4 billion (HK$23.94 billion) to acquire a 49 per cent stake in Global Switch from British owner Aldersgate Investments, which is controlled by global private equity firm Reuben Brothers.