Amazon to expand its cloud offering in China, partners with Ningxia Western

Ecommerce giant Amazon will expand its cloud service offering in China through a partnership with a local firm in Ningxia, in the north-west of the country.

Amazon Web Services announced this week it has partnered with local firm Ningxia Western Cloud Data Technology Co Ltd so it can offer customer services based out of the Ningxia region.

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In a statement Amazon said: “AWS has formed a strategic technology collaboration with NWCD, and NWCD operates and provides services from the AWS China Ningxia Region, in full compliance with Chinese regulations.”

AWS will sell the hardware assets of its Beijing-registered cloud unit for up to $302mn to its partner, Beijing Sinnet Tech Co Ltd in order to comply with new regulations.

Currently, according to Synergy Research Group, 80% of the total cloud services revenue in China is made up of Chinese firms.

In order to comply with regulations which got even tighter this year, AWS services offered in China are currently separate from other global regions, and customer agreements are held with Sinnet and NWCD rather than with AWS.

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