Tencent plans to expand its data center in the Middle East

Tencent (00700.HK) Senior Executive Vice President and Head of Cloud and Smart Industries Tang Daosheng stated that the group is seeking to enhance its cloud computing business outside of China and plans to expand its data center network in the Middle East.

In an interview with foreign media, Tang mentioned that the company plans to increase the number of "availability zones" for cloud services in countries such as the Asia-Pacific, Europe, and the Middle East within the next 12 to 18 months. These zones are designated locations for potential data center clusters.

He stated that Tencent is "actively" exploring the construction of data centers in the Middle East to provide services to cloud customers. "We do intend to increase our investment in the region and establish a stronger partner network. Everything is in the planning stage," but he did not provide further details on specific timelines or countries for the availability zones.

Reports indicate that Tencent has already established an "availability zone" in Saudi Arabia, and further expansion in the Middle East may face more direct competition from U.S. tech giants including Amazon (AMZN.US), Microsoft (MSFT.US), and Alphabet (GOOGL.US).

However, the group hopes to leverage its strong user base in China for international expansion, thereby differentiating itself from competitors, as customers using Tencent's cloud services in China may also purchase the company's services overseas