Pacnet and the municipal government of Chongqing, China, have signed an MOU concerning the development of an international cloud computing hub in Chongqing.
According to the MOU, data centers will be built on nearly a third of the land that the government has designated as a cloud computing zone.
The building of the data centers will be completed in three phases, with investment for the first phase tagged at 1 billion yuan ($150 million). One-fifth of this sum will be used for data center construction and cloud computing-related software and equipment.
Pacnet Business Solutions, an equity sharing joint venture between Pacnet and Zhong Ren Telecom, will operate a data center with at least 1,500 racks to provide cloud computing services, the company said in a press statement.
Pacnet will also deliver capacity to the cloud computing zone through the EAC-C2C, Asia’s largest privately-owned submarine cable network, and the EAC Pacific, both of which it owns and operates.
Pacnet operates more than 100,000 square feet of data center space globally.