(Yicai Global) Aug. 16 -- Hangzhou Zhonghen Electrics Co. [SHE:002364] has successfully bid for and signed the supply contract for a data center project of Alibaba Network Technology Co. to provide high voltage DC power systems (HVDC) and other relevant devices.
Zhonghen, headquartered in Hangzhou, in China's southeastern Zhejiang province, received a notice it won the bid for HVDC and other devices of Alibaba's cloud computing data center.
It also clinched the bid for HB33 high voltage direct current equipment and relevant devices for the AtHub HB33 project, the company announced Aug. 16. The prices of the two projects are respectively USD4.47 million (CNY30 million) and USD2.99 million (CNY20 million).
In a tableau where cloud computing leviathans such as BAT constantly increase their investment in large-scale data centers, its HVDC has been validated and greatly approved of for years for its outstanding advantages in reliability and operating costs, Zhonghen said.
Zhangbei Data Port Information Technology Co. is a partner of Alibaba, public data shows. The HB33 project is a data center in Zhangjiakou City in China's east-central Hebei province to be built up by both parties based on Alibaba's existing data center, which the pair will further construct and operate.
Zhonghen also secured the bid for the data center energy storage and standby battery service purchase project of China Mobile Communications Corp. [HK:0941] in January to provide HVDC power and electricity solutions.
Buoyed by the news, Zhonghen's stock price rose 8 percent this afternoon, and then another 4.14 percent to close at CNY14.59.