$100 million

money that could be saved annually via the cooperation

The Shenzhen-based firm said around 600 to 800 IT service engineers will maintain the server system and then be sent overseas to support its global services. It also plans to use the center to train selected employees.

Last November, Huawei and the Guizhou provincial government signed a cooperation agreement to work on internet of things technology, construction of a smart city, intelligent manufacturing, and the application of big data and cloud computing.

The company said the cooperation may save as much as $100 million annually in electricity charges, due to the lower cost of energy.

Rolling out a range of preferential policies for the big data application and development, Guizhou province is becoming a new big data hub. Last month, Apple Inc announced it would open its first China data center in Guizhou province, which is part of a $1 billion investment in the area and will be operated by a local data management company.

James Yan, research director at Counterpoint Technology Market Research, said he was optimistic about the prospects for the center’s future development, as it will benefit greatly from the local government’s supportive polices and big investment.