(Yicai Global) Oct. 11 -- MCC Meili Cloud Computing Industry Investment will team with Shanghai Electric Power to fund, build and run a large or super-large cloud data center in Shanghai or its environs.

Meili Cloud Computing, an A-share listed company specialized in both traditional papermaking and cloud computing services headquartered in China's northwestern Ningxia Hui Autonomous Region, recently signed a framework agreement with Shanghai Electric Power, Meili Cloud Computing said in a statement yesterday.

The cloud data center will be in Shanghai or its surrounding to make the best use of Shanghai Electric Power's grid and the city's real estate resources, the statement said.

Meili Cloud Computing will likely lease land from Shanghai Electric Power for the cloud data center, or it may be the object of their joint investment and operation, per the agreement.

Meili Cloud Computing will build the cloud data center and introduce large major internet and government customers to it, while Shanghai Electric Power will provide the facility with electric current and a preferential settlement price for key customers to confer an operating cost advantage on it in the local market, under the agreement.

Meili Cloud Computing's actual controller is China Chengtong Holdings Group affiliated to China's State-Owned Assets Supervision and Administration Commission of the State Council. Chengtong Holdings has a data service center in Zhongwei, in Ningxia, and key internet service operators such as China Telecom, China United Network Communications Group -- better known as China Unicom -- and Qihoo 360 Technology unit Beijing Qihu Keji are its major clients, public data show.

Editor: Ben Armour