Huawei Technologies Co Ltd has launched a new data centre project in southwestern China. The facility, located in the Guizhou province, spans 400,000 sq.mt and houses almost 600,000 servers maintained by 600 to 800 IT service engineers.

According to reports, the engineering professionals will then be sent overseas to support Huawei’s international services.

This move forms part of an agreement between Huawei and Guizhou provincial federal government which was announced last November. The partnership is expected to save Huawei $100 million annually in electricity charges.

The Guizhou province is a large division with a population of nearly 35 million people. It is an attractive destination for data centre operators, with several tech giants, including Alibaba and Qualcomm, locating their infrastructure in the area.

China Telecom has invested $1.14 billion in the region’s new Information Park, one of the world’s largest cloud computing hubs, measuring 3,552,090 sq.ft.

Last month, Apple also announced plans to open its first Chinese data centre in the Guizhou province.

In 2016, the data industry was worth more than $7.27 billion to the economy of a province.

‘Guizhou province offers an ideal climate for operating data centres. It is also an important energy base in China, alongside its favourable data centre policies. Taking these advantages, we aim to build an industrial park, which serves as a global management data storage centre and a base to train the talents,’ said Ren Shulu, a senior vice president at Huawei.

Last week Huawei announced its business results for the first half of 2017. The company generated revenue of nearly $42 billion, an increase of 15% over the same period last year. The company’s operating margin was 11%.