Apple said on Wednesday that it has partnered with local Internet services company, Guizhou-Cloud Big Data Industry Co Ltd, to set up its first data center in China. Apple’s data center will be located in the southern province of Guizhou, and it will help the U.S. firm comply with new cybersecurity laws introduced last month in Beijing.

Apple’s data center
barek2marcin / Pixabay

How Apple’s data center in China will help

Apple’s data center will help by speeding up services such as iCloud for Chinese users and also complying with the laws that make it mandatory for foreign companies to store information within the country. Like Apple’s other data centers, renewable energy will fully drive the new facility, where Apple will migrate Chinese users’ information, which is currently stored in other places.

Apple told Reuters that the new data center is part of its plan to invest $1 billion in the province.

“The addition of this data center will allow us to improve the speed and reliability of our products and services while also complying with newly passed regulations. These regulations require cloud services be operated by Chinese companies so we’re partnering with GCBD to offer iCloud,” the U.S. firm said in a statement.

Data security is a major concern

Chinese law requires all foreign firms operating within the nation’s boundaries to store sensitive information on domestic servers. Such firms are also required to pass security reviews before proceeding with the transfer of such data out of the country.

China’s cybersecurity law has generated a wave of fear among companies that government agencies might misuse to engage in snooping activities. Addressing this, Apple clarified that China’s laws will not have any impact on its data protection protocols, notes AppleInsider. Further, Apple reasserted its commitment to security and data privacy, adding that it will strictly implement its decision of not creating a backdoor into any of its systems.

In 2015, Apple first started storing encrypted iCloud data on China Telecom servers in the country. At that time, the U.S. firm said that it would help Mainland China users by improving iCloud’s performance.

Denmark to get one more Apple’s data center

Separately, Apple confirmed its plans on Monday to build a second data center in Denmark to be run on renewable energy. Apple’s data center in Denmark, which is expected to be completed by 2019, will help it ramp up most of its services, including iMessage, App Store, Maps, Siri, etc.

In a statement to Reuters, Apple’s Nordic manager, Erik Stannow, said “We’re thrilled to be expanding our data center operations in Denmark, and investing in new sources of clean power,”

Lately, Denmark has been attracting investments from some big U.S. tech companies. Earlier this year, social networking giant Facebook revealed plans to build a data center in Denmark, its third data center outside the U.S. In June, there were reports that Google acquired a 73.2-hectare plot in Denmark to construct a data center.

On Tuesday, Apple shares closed up 0.32% at $145.33. Year to date, the stock is up almost 26%, while in the last year, it is up almost 51%.