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IBM to Build Third Data Center in China to Meet Cloud Computing Demand

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IBM announced on Thursday it will build a new cloud computing center in China’s Jilin province, which will mark the company’s third facility in China.

Once completed, the center will power digital city and cross-industry cloud computing services for Liaoyuan, Northeastern China, and Inner Mongolia.

IBM has been significantly expanding in the Asia Pacific region as the demand for its cloud computing services continue to increase. A recent Gartner study showed spending on data center services in the Asia Pacific region reached $10 billion in 2011, while web hosting and colocation were $2.5 billion.

The report also showed that customers in many Asia/Pacific countries prefer local data centers because they want to have control over data.

IBM’s other two cloud computing centers in China are located in Langfang City in Hebei province, which is considered the largest cloud computing center in Asia, and another in Wuxi, Jiangsu province.

In addition to the China data centers, IBM recently opened two Japan data centers and a data center in Singapore. IBM also has seven cloud labs in the Asia Pacific region, including China, India, Korea, Japan, Hong Kong, Vietnam and Singapore.

Set to open in April, the new China data center will provide comprehensive cloud services and technology portfolio via IBM’s cloud delivery infrastructure.

IBM, IT outsourcing and consulting provider iSoftStone, and mobile communications technology company Datang Mobile plan to invest $159 million on the project over a three-year period, with a first-stage investment of $79.4 million to be completed by June 30.

The cloud computing center is expected to earn revenues of $206 million within the three-year period following completion, and $318 million within five years of completion.

IBM is also partnering with Jilin University on establishing joint R&D organizations. The university will establish a local center in Liaoyuan for graduate students with a focus in computing applications and software.

Talk Back: Are you currently offering cloud hosting services in the Asia Pacific market? Have you seen a significant increase in demand in cloud services in the Asia Pacific region within the past year? Let us know in the comments.

About the Author

Justin Lee has been a staff analyst with theWHIR since 2004. He writes about a range of web hosting and IT-related issues facing the industry on the WHIR website, as well the print version of the WHIR magazine. Follow him on Twitter @Justin_theWHIR.

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  1. Jeffrey Brown

    is it possable to to invest in stock bin cloud Co like IBM whivh are there names Please respond on them all and IS IBM the biggest player

    Reply