Huawei Technologies will pour some 4 billion yuan ($632.5 million) to build a new headquarters and R&D centre for its digital power unit, according to local media reports. The move appears to be another step to diversify as US policy challenges its global ambitions.
The 21st Century Herald newspaper reported Huawei Digital Power signed an agreement for the project with the Shenzhen local government, where its parent is headquartered.
The signing was part of a larger event held by Shenzhen to mark the launch of new construction projects in the city, it said.
The 21st Century Herald said that Huawei’s project would boost the “dual carbon” goal, referring to China’s goal of reaching its carbon emissions peak before 2030 and becoming “carbon neutral” before 2060.
Huawei has been trying to diversity its portfolio beyond its core telecoms and smartphone businesses, which have been hit hard in recent years by US export restrictions which make it more difficult for the company to access and use technology.
Huawei Digital Power was registered last June under the name of the parent company’s current rotating chairman, Ken Hu.
The company website says Huawei Digital Power was created to face “the challenges of the era of big data, traffic, and energy consumption,” including smart data centers and helping telecom and tower operators achieve “green efficiency,” according to the company website.
In January, Huawei Digital Power and China Resources Power Holdings Co Ltd, which operates coal-fired power plants across China, signed a cooperation agreement to develop clean energy projects such as big data platforms for solar panels, energy storage systems, and smart power plants.
- Reuters, with editing by Neal McGrath
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