(Yicai Global) Jan. 8 -- Tencent Holdings and Suzhou will join hands to advance the digital economy in the eastern Chinese city, including building the tech firm's first digital industry base in the Yangtze River Delta region.

Tencent will set up its No. 1 digital industry base in the region that covers Shanghai and Zhejiang province in Suzhou to promote the regional digital economy, Suzhou Daily reported today.

The project is expected to bring CNY10 billion (USD1.6 billion) in investment in related industries, and achieve CNY20 billion in annual output. The focus is on cloud computing, Big Data, and artificial intelligence.

Moreover, the tech company will build four centers, dedicated to developing the digital industry, technologies and innovation, AI, and cultural tourism in Suzhou.

The two parties will establish a company called Suzhou Tencent Digital Industry Operation to construct a service platform covering blockchain, digital twin, AI, and cultural tourism industries at the four centers.

The Shenzhen-based company has cooperated with the eastern city before on finance, industry, and digital content. Tencent Cloud has built one of its industrial cloud bases in Zhangjiagang. Tencent has also helped the Rural Commercial Bank of Zhangjiagang and Kunshan Rural Commercial Bank to upgrade their digital supply chain services for over 10,000 small and medium-sized firms in the region.

Editor: Emmi Laine