Microsoft Corp MSFT plans to add four new data centers in China by early 2022, Bloomberg reported on Friday.
What Happened: The tech giant aims to expand its service capacity in China, which is among the fastest in the region, the report noted.
The Satya Nadella-led company already has six data centers in China and is now aiming to leverage the global surge in demand for internet services during the pandemic.
The China cloud market is expected to grow to $46 billion in 2023 as businesses migrate to the cloud, as per the report that cited a government white paper.
Why It Matters: The development comes as Chinese e-commerce giant Alibaba Group Holding Ltd. BABA is preparing to launch its first data center outside of China in the Philippines by the end of this year. It has already opened its third data center in Indonesia.
Expanding data centers allows cloud providers to boost their capacity in certain countries or regions.
Price Action: MSFT shares closed 1.37% higher at $260.90 on Thursday and were up 0.2% in after-market hours.
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