Business· TMT

Shanghai AtHub, Alibaba agree data center project for USD 347 mln

minutes 2019/12/03 09:01:03
Data center, Cloud, Hosting services

Dec 03, 2019 (China Knowledge) - China’s IT services provider Shanghai AtHub (603881) announced that the company has received a letter of intent from Internet giant Alibaba (BABA) for a data center project with a total estimated service charge of RMB 2.44 bln (USD 346.65 mln).

Under the project, AtHub will construct five custom hyperscale data centers, codenamed ZH13, GH13, JN13, NW13 and HB41, and operate these data centers on behalf of Alibaba. The total term of operation is 10 years, with the data centers comprising state-of-the-art infrastructures such as diesel generators, cooling systems and uninterruptible power supplies.

The 5 cloud data centers will host various services of Alibaba. The official start date for the construction of the data centers have not been disclosed, although Athub is obligated to deliver the cloud infrastructure within 18 months from the start of the project, as per the terms of the agreement between the company and Alibaba.

Headquartered in Shanghai, China and founded in 2009, Shanghai Athub is a leading provider of data center services, such as data center server hosting services and network bandwidth services for cloud computing. The company also provide other services such as data consulting and outsourcing services. Athub recorded total revenue of RMB 907.84 mln in 2018 (USD 128.83 mln)

According to the statement, the data center project will not have a significant impact on the company's performance this year, although impact may gradually emerge with the delivery of the data centers in the future. Revenue and profits generated will be recognized by Athub in stages within a 10-year operating service period based on the project delivery time and progress.

Demand for data center related services has been growing rapidly in China. It is estimated that total amount of data in China will reach 8 zettabytes by 2020, making up one-fifth of the total data across the world.

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