Chengdu and China Telecom signed on Feb 10 to co-establish a western cloud-computing base in Chengdu. This marks Chengdu as the third core node of the Internet Data Center (IDC) and cloud computing operation center of China Telecom after Shanghai and Guangzhou, two coastal cities in China.

Ge Honglin, mayor and deputy secretary of the Chengdu Municipal CPC Committee met with Zhang Jiping, vice president of China Telecom and attended the signing ceremony.

With a total investment of 10 billion yuan ($1.59 billion), the China Telecom western cloud computing base project includes western IDC, mobile Internet, smart city, triple play, Internet of Things and a large data disaster recovery center.

The project plans show that computer rooms will cover an area of 500 thousand square meters and carry over 50 thousand racks, seven times as much as the current IDC service capacity in Chengdu. With more than 90 thousand professional workers, the base will help promote the Internet and cloud service industrial cluster exceeding 60 billion yuan.

Ge Honglin said that Chengdu attaches importance to developing the cloud-computing industry. The cooperation between China Telecom and Chengdu will boost Chengdu's forward development in the industry and promote Chengdu's status as a western communications hub.

The Chengdu municipal government will provide high quality government services and create a good operation environment to facilitate more collaboration with China Telecom in building a wireless city and improving Network speed.

Zhang Jiping said that Chengdu serves as an important communications hub in West China with good capacities in triple play, Internet of Things and cloud computing. Enjoying an advantageous location and adequate talent supply, the cooperation between China Telecom and Chengdu will achieve fruitful results.