Chinese tech giant Tencent has invested 10 billion yuan ($1.41 billion) in a large-scale big data center in North China’s Tianjin, covering an area of 280 mu (18.67 hectares).
Equipped with 300,000 servers, the center will provide significant support to the company’s business in North China and serve domestic internet users while offering comprehensive cloud platform services to other enterprises.
Closely following Tencent’s investments in recent years, Liu Dingding, a Beijing-based veteran tech industry observer, found cloud-services have become top priorities for the company.
“Once finished, the data center will greatly facilitate Tencent’s cloud service capacity and help with its partners,” Liu said.
Owning China’s most popular messaging app WeChat, the omnipotent tech giant is eyeing more.
And, Tencent is preparing to buy a stake in Oxford Nanopore, a biotech firm leading the UK’s charge to develop testing kits for COVID-19, Sky News reported on June 19.
Investing in a diverse range of business sectors, from e-commerce to video gaming, from ride hailing to fintech, and from electric cars to social media, the tech giant has a vision for promising industries in the future.
So far, Tencent has built two major labs for artificial intelligence (AI) and cutting-edge technologies, covering AI, robotics, quantum computing, 5G and the Internet of Things.
“It is notable that Tencent has invested in multiple areas. More importantly, it does not seek control over the companies that it invests in. Instead, it empowers the companies and helps them grow together,” Liu told the Global Times on Wednesday that Liu Qiangdong is still the decision- maker for e-commerce platform JD.com, rather than Tencent.
Like fellow conglomerate Alibaba, Chinese tech giants do not seek a particular label, but dabble in all areas, Liu said. “In the future, Tencent and Alibaba will perform as platforms, assisting developers and partners to explore, research, test and expand.”
On Tuesday and Wednesday, Tencent’s stock price soared. After eliminating weight price, the share surpassed a record high on January 29, 2018 and has witnessed 28 percent growth since 2020.
Liu noted that it shows the capital market remains optimistic about Tencent’s future due to its far-sighted layouts in different industries, of which some have already achieved good results.
“The destiny of China will be driven by tech companies. The ‘new infrastructure’ is based on technological manufacturing and technological infrastructure building, relying on giants like Huawei, Tencent, Alibaba and the like,” Liu said.
After domestic tech giants go international, they will definitely challenge the positions of Western tech giants, namely Google and Facebook, he said, giving credit to the better services and multiple functions of Chinese apps.
The Boston Consulting Group (BCG) recently published a survey of 2,500 global innovation executives and found Huawei had made an impressive leap – jumping 42 places to rank 6th among all the most innovative companies around the world.
Alibaba, Tencent and JD.com are all in the top 50.
“Digital, networked and intelligent applications make China’s economy and Chinese society more resilient in the face of the COVID-19 outbreak,” Ren Yuxin, chief operating officer of Tencent Holdings, said at the Fourth World Intelligence Congress in Tianjin on Tuesday.
He noted smart logistics, online healthcare services, online education and telecommuting have facilitated China’s work resumption accurately and in an orderly manner.
For instance, the number of daily active users on Tencent Meeting, an app to serve work-from-home, has surpassed 10 million, according to Ren. Launched by Tencent Cloud, Tencent Meeting is communications software that combines video conferencing, online meetings and chats, facilitating Chinese people’s online communications during the COVID-19 outbreak.
Tencent’s logo File photo: IC
