Apple, Inc. (NASDAQ: AAPL) On Wednesday, Apple announced that they will be setting their very first data center in China in partnership with a local internet services company to comply with tougher cyber security laws introduced last month. The center will be built in the southern province of Guizhou with a data management firm called Guizhou-Cloud Big Data Industry Co Ltd (GCBD). The investment into the province would total up to $1 billion. This would allow Apple to improve the speed and reliability of their products and services while also complying with newly passed regulations that was implemented on June 1. The regulations would require cloud services to be operated by Chinese companies so partnering with GCBD would be ideal to offer iCloud.
This new law was not designed to put foreign firms at a disadvantage, rather to prevent the threat of cyber-attacks and terrorism. As Chinese cloud firms are expanding rapidly into foreign markets, more and more regulations will arise as well as data centers. Chinese E-commerce company Alibaba Group Holding Ltd already has 17 data centers across China, the United States, Southeast Asia, Europe, Australia, and the Middle East. Other foreign firms that also oversee cloud businesses with data centers in China include Amazon and Microsoft.