Tencent Expands, Opens New Data Center in US

Tencent Holdings opened a data center in California recently in order to grow its cloud business outside of China, where the business is headquartered. The company is also reportedly opening another four centers across the globe as part of the expansion.

The other data center locations will pop up in Frankfurt, Mumbai, Seoul and Moscow, according to CIO.com. They hope to gain Chinese clients who want to expand overseas or international organizations that want to grow in China or other parts of the globe.

The expansion is aimed at creating more demand for Tencent’s cloud services from online games to finance. The company already has more than 12 data centers in China, plus facilities in Hong Kong, Singapore and Toronto.

The organization owns China’s largest social netwrk WeChat and its cloud services revenue reportedly more than tripled year-on-year in 2016 due to an uptick in enterprise accounts and usage of existing accounts.

The company first served game developers with its cloud services, but since then has made a name for itself in alternate markets like video broadcasting, internet finance, enterprise and more. The provider claims to have a unique advantage in its foundation of technologies such as security, big data, payment, artificial intelligence and more.

“Utilizing these technologies, Tercent cloud provides tailored solutions for various customers and industries,” Tencent President Martin Lau said in an earnings call last month.

Tencent’s main competition, Alibaba Cloud, kicked off a global expansion in 2016, which may have been the fuel for the move. They’ve also made some interested investments lately, including acquiring a 5 percent stake in car creator Tesla. The company also invested in Supercell, a Finnish mobile game developer.

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