China-based IT service provider Digital China at TecMall Forum in Taiwan, revealed that the company is in cooperation with Quanta Computer to establish a data center in Shanghai. Quanta will provide hardware infrastructure and Digital China is responsible for developing the application platform, according to Digital China CEO Guo Wei.

Guo pointed out that the two firms' cooperation has just started and still needs to get approval from the Shanghai government to proceed; therefore, he expects details of the cooperation to be clearer in 2011, when an official announcement will be made.

As for Digital China's sales performance, Guo pointed out that the company has seen over 30% on-year growth each year in the past and believes the company will continue to see strong growth in the future.

As for market rumors about Digital China's failure to acquire the distribution rights for Apple's iPhone 4 in China, Guo declined to comment, but pointed out that Digital China has a tight relationship with Apple; and therefore he cannot comment about the two's cooperation due to confidentiality agreements.

Although Quanta declined to comment on its clients or projects, market watchers believe that Quanta has always taken an open attitude toward cooperation on cloud computing and since the company currently only has about 3% of its revenues from cloud computing business, China will be a major market that the company will work aggressively into.