Chinese Internet provider
Tencent Holdings is to invest $1.57 billion in the cloud over the next five years. The company, an Alibaba rival which was founded in 1998, has headquarters in Shenzhen, China. It offers a wide range of services including online games, instant messaging, wireless Internet value added services, interactive entertainment and online advertising. Its investment in the cloud is intended to strengthen its position in what is a booming market, both in China and globally.
Tencent Holdings’ plans will see it build data centers in China, Hong Kong and North America. This mirrors Aliyun (the cloud arm of Chinese consumer-to-consumer, business-to-consumer and business-to-business ecommerce company Alibaba) which launched a data center in Silicon Valley earlier this year.
Tencent Holdings received $12.4 billion in revenue in 2014 and expects in invest $315 million in the cloud each year over the next five years. Aside from building and operating data centers, Tencent Holdings will engage new staff and engage in marketing with its investment.
News of the company’s expansion comes after strong second quarter results announced August 12, 2015. The company’s total revenues were $7,496 million, an increase of 20% over the first half year of 2014. Its operating profit was $3,175 million, another increase of 24% year on year.
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