China’s Tencent Holdings opened its first data center in Silicon Valley this week, expanding cloud-computing services into the United States, the Wall Street Journal reports.
With the move, Tencent became the second Chinese firm after Alibaba to open such a center in America’s technological heartland, the paper noted.
E-commerce titan Alibaba already operates two data centers in Silicon Valley and a third on the US East Coast.
Alibaba and Tencent are boosting their cloud-computing businesses as they seek to tap the growth of Chinese companies and their demand for computing power overseas.
Cloud platforms provide additional storage, computing and networking resources to help companies grow at lower costs.
Tencent said it is boosting the number of data centers world-wide as demand rises for cloud services from online games, internet finance and other web-related industries.
The Shenzhen-based firm plans to open data centers in Frankfurt, Moscow, Mumbai and Seoul.
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