Work on China's very first cloud data center SAR or special autonomous region is now taking place in the southwestern city of Chungqing and a report on the project's progress together with an analysis of its economic implications has recently been released by BroadGroup, according to a press statement by this information media technology and professional services consultancy firm.
The report also examines the challenges facing foreign investors there, among them protection of intellectual property rights and data privacy.
"Undoubtedly, Chungqing represents a completely new way in the business model for data operations in China and although not for the fainthearted, and still not easy, the commercial opportunities that could unfold from the cloud SAR offer significant potential in the world's largest data center market," said the BroadGroup statement.
It also said Chungqing's status as data center SAR is on a trial basis by China policymakers.
Foreign investors have been given incentives to participate in the building of the cloud data center, first for China and a "radical business model for this country."
Expected to be fully built within 2018 to 2020, the cloud data center SAR is envisioned to transform Chungqing into China's and Asia's transshipment point for digital goods and services.
Chungqing-along with Beijing, Shanghai, and Tanjin-enjoys the status of a municipality under China's political system. As such, the central government has given it top priority over other localities with regard to policy support and financial subsidies.
With the Chungqing cloud data center SAR, China economic planners intend to greatly allay concerns over IPR and data privacy protection, the statement said.
"Chungqing wants investors to experience a fast track process through the minefields of licensing, land, construction, power supply, and bandwidth issues," according to the statement.
It added that the report describes how Chungqing offers business benefits to foreign investors on matters of common concern for all data center projects even though it is administered within an excessively bureaucratic context.
Construction on the dedicated data center zone has already started with nine locators now building their facilities or in the process of deciding to build them with more companies mulling over the possibility of locating into it.
The integrated network services and data center platform provider Pacnet has already built the first phase of its facility there with the capability to host 40,000 servers. Construction of this facility is regarded as a key project, expected to attract more multinational investors to relocate to Chungqing.
"Ultimately, the success of the trial depends upon the completion of a unique direct circuit connection between Chungquing and the interactive telecom gateway in Shenzen, the outcome of which should be known by the end of 2013," the statement said.
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