Alibaba Picks Kehua Hengsheng to Build, Run New Data Centers

Alibaba Picks Kehua Hengsheng to Build, Run New Data Centers

Tang Shihua

Date: Wed, 08/15/2018 - 15:00 / source:Yicai
Alibaba Picks Kehua Hengsheng to Build, Run New Data Centers
Alibaba Picks Kehua Hengsheng to Build, Run New Data Centers

(Yicai Global) Aug. 15 -- Alibaba Group Holding, one of China’s biggest tech firms, is turning to electronics equipment supplier Kehua Hengsheng for its cloud data center services.

Kehua Hengsheng has received a letter of intent to build and manage the data centers for Alibaba, the Xiamen-based firm said in a statement yesterday. The supplier will have 18 months to have the facilities up and running from the day it begins building them, before managing the centers for 10 years.

The statement did not disclose financial details or the proposed location and size of the facilities, but did outline that Kehua Hengsheng will be responsible for initial investments and construction costs, and that this may lead to financial strains.

The firm hopes to get the project underway as soon as possible, it added.

Editor: James Boynton

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Keywords: Data Centers, Cloud Computing, Alibaba, Kehua Hengsheng