Pacnet, China Telecom to push data centre and cloud development in Chongqing

Pacnet’s equity joint venture in China, Pacnet Business Solutions (China) (“PBS”) and China Telecom Corporation Chongqing (China Telecom) today announced a strategic partnership to advance data center and cloud development in the city of Chongqing.

Under the partnership, China Telecom will establish new Points of Presence (PoPs) in Pacnet’s Chongqing data center, CQCS1, enhancing its capability and helping propel Chongqing as well as the Liangjiang New Area to the forefront of the cloud computing industry in China.
 
The partnership combines Pacnet’s unrivalled infrastructure in Asia-Pacific with China Telecom’s extensive network reach to provide customers that are co-located in the CQCS1 data centre with low latency, reliable bandwidth and fully diverse connectivity to critical hubs throughout an expansive footprint. CQCS1 is the first Tier III data centre in Southwest China providing flexible solutions that meet the expanding business requirements of multinational organizations. 
 
“Pacnet is honoured to support the Chongqing municipal government in fostering cloud development to meet the growing power, efficiency and availability demands of this emerging telecommunications hub,” said Carl Grivner, CEO, Pacnet. “A significant milestone for Pacnet’s business in China, our strategic partnership with China Telecom enables us to provide low latency and reliable services for customers with existing operations or expansion plans in Southwest China.”
 
Pacnet is the only foreign invested company licensed to provide data centre network services in the city of Chongqing. 
 
“We are pleased to be a part of this strategic partnership and paramount technical initiative. The collaboration enables us to combine our extensive network coverage in China with a Tier III data centre service delivered by a leading regional data centre provider in order to effectively serve the growing cloud communities in Chongqing as well as the rest of the country,” added Zhaoqiang, General Manager at China Telecom Corporation Chongqing. 
 
China leads the Asia-Pacific region in data center services demand. Its Southwestern megacity, Chongqing, is growing at an annual rate of 12%, and has become a very important hub for Pacnet in China as well as the rest of the Asia-Pacific region. By 2017, the Software and Information Services industry in Chongqing is forecasted to reach $350 billion and e-commerce volumes are forecasted to grow to $250 billion.
 
Speaking at the agreement signing ceremony, Zhaogang, Chief Engineer, Chongqing Economic and Informatisation Commission said, “Pacnet’s partnership with China Telecom will help drive new growth in software and information services for both foreign and local enterprises, further advancing Chongqing as a major cloud computing hub in China.”
 
This collaboration expands on the Pacnet and China Telecom June 2013 Master Service Agreement (MSA) to provide IPVPN, Internet and data centre services to global enterprise and carrier customers as well as cloud service providers looking to establish or expand their presence in China, one of the world’s largest and fastest growing digital populations.
 

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