IBM, Range Technology to Build Massive Cloud Computing Data Center in China

Plan to construct largest such facility in Asia by 2016 to fuel Chinese enterprise outsourcing services.

January 31, 2011

D.H. Kass

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IBM Corp. said that it will team with China-based Range Technology Development Co. Ltd. to construct a mammoth 6.2 million square foot, state-of-the-art cloud computing data center that the companies contend will be the largest such facility in Asia, spurring economic development and also serving as an IT hub for the region.

The operation, slated for completion by 2016, will be located in Langfang, an economically-developing city in Hebei Province just south of Beijing.

It will prompt economic growth in the region by enabling companies in China to provide enterprise-level outsourcing services, business continuity, disaster recovery, cloud computing storage and management of mobile devices, officials said. Services will be made available to government departments and private businesses, the companies said.

IBM and Range pointed to the project’s fertile setting, citing figures from researcher International Data Corp. (IDC) that forecast data center services in China to reach some $2.6 billion by the time the facility opens.

"The data center offers the world-class infrastructure capabilities and advanced network-based services to support the business growth of our clients," said Madam Zhou Chaonan, Range Technology chairman.

"This initiative plays a critical role in the economic development of China in light of the pressing demand for managed hosting in the areas of cloud computing and mobile devices," she said.

IBM is expected to provide data center design services, technology, training, solutions and business applications, the companies said.

"This new facility will leverage IBM's data center innovation and resources to provide a cost-effective solution while providing the flexibility to meet the unpredictable changes in IT demand – whether it is from changes in IT technology or new business models such as cloud computing," said Steven Sams, IBM vice president, Site and Facilities Services.

Range said that the companies will work jointly to provide hosting services and that it will support ISVs through the cloud computing and services platform. The company also plans to use the data center to help medical facilities in the area develop electronic health records (EMR) technology.

IBM said that it owns or manages some eight million square feet of data centers for its clients and has built or designed such facilities worldwide that total more than 30 million square feet.

TAGS: cloud computing,IBM,China,data center,Range Technology

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