Tencent set aside $70bn for cloud and AI data centre campuses
The Chinese technology giant sets aside funding for new infrastructure with more than a million servers to support global digitalisation.
Tencent Holdings will be investing around $70 billion (500 billion yuan) over the next five years to launch an array of advances in cloud computing as well as other technological offerings.
In the announcement made on Tuesday, the company post on their messaging platform WeChat that other areas of the spending plan include artificial intelligence, blockchain, Internet of Things (IoT) and quantum computing.
The new infrastructure will include fifth-generation wireless base stations, high-speed rail, data centres and the internet of things.
It has been reported by multiple outlets that the company’s plan may be in response to Alibaba Group Holding’s $27.9 billion (200 billion yuan) three-year investment plan in cloud services.
In April, Alibaba said that the capital expenditure (CAPEX) will be deployed over the course of the next three years and will include the construction of data centre buildings and development of semiconductors and operating systems.
Time is precious, but news has no time. Sign up today to receive daily free updates in your email box from the Data Economy Newsroom.
Yesterday, Tencent announced that the company has priced an aggregate principal amount of $6 billion unsecured senior notes issued under its $20 billion Global Medium Term Note Programme.
Martin Lau, President of Tencent, said, “We are pleased with the positive response to the notes, demonstrating investors’ recognition of our fundamental business resilience, which enables us to sustain robust cash flows while fulfilling our responsibilities to society.”
After issuance of the $6 billion notes on 3 June 2020, the company will have utilised $18 billion in aggregate principal amount of notes outstanding under the Programme.
“We have a strong balance sheet with ample and highly liquid assets, and first issuance of a 40-year tenor notes extended our credit curve further and balanced our debt maturity profile,” said John Lo, Chief Financial Officer of Tencent.
“Going forward, we will continue to stay prudent in our financial management and focus on maintaining the right balance between capital expenditure, investments and returns.”
Read the latest from the Data Economy Newsroom: