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Beijing, June 22 (TMTPOST) — Chinese Internet giant Tencent is planning to set up a new data center in Japan, which will be the company’s third data center in the country.

Tencent decided to expand its data center capacity in Japan because of growing demand for online gaming and streaming services from local users.

Tencent Cloud Global’s Senior Vice President Poshu Yeung stated that Tencent’s annual growth has been strong, with most of the growth coming from the company’s cloud game service. “We will set up our third data center in Japan. We have experience with that. It won’t take much time,” Yeung said.

In 2019, Tencent entered the cloud market in Japan. The company has not disclosed any financial detail about the revenues and costs of the data centers in Japan.

Tencent will roll out a new service in Japan to promote the creation of the metaverse. The new service will offer dozens of templates to users. In January, Tencent launched a service in Japan that allowed users to create virtual avatars and receive livestreaming support on cloud. The new service might be an upgraded version of the original service.

Tencent Cloud started to expand internationally since 2016. Tencent Cloud has entered over ten countries and regions. “We have 30 data centers operating outside of China. Our newest data centers are located in Brazil and Indonesia,” said Yeung.

The Japanese market and the South Korean market share many similarities, according to Yeung. Tencent will make use of its experience in the game sector and help companies in Japan and South Korea expand to Brazil and Southeast Asia.

The company is also seeing increasing orders of cloud services in Europe.

Founded in 2013, Tencent Cloud is one of the leading cloud providers in the world with a focus on helping global enterprises succeed in China.