(Yicai Global) May 15 -- Shares of Inesa Intelligent Tech hit the limit-up this morning after the Chinese firm said that it will invest CNY598.8 million (USD84.3 million) to establish a Big Data center in Shanghai to meet local demand.

Inesa's stock price [SHA:600602] rose by 10 percent to CNY8.01 (USD1.10), the highest since mid-March.

The firm's unit, Shanghai Science and Technology Network Communications, will set up a third-party data center that should start trial operation next March, the Shanghai-based cloud server and electronic components firm said in a statement yesterday. The plan is to refurbish an existing building with 4,000 racks.

The investment should provide a return in less than seven years while the life span of the center is estimated to be 21 years, the company added.

SSTNC, of which Inesa owns 80 percent, already has 2,700 racks in three data centers. The unit has posted an average annual gain of 29 percent in net profits since 2013, and a 17 percent revenue hike, but it needs to expand its offering to align with the demand, the parent added.

Editor: Emmi Laine