Foxconn is teaming up with 21Vianet to form a joint venture to develop a global supply chain for the Internet data center and cloud computing infrastructure markets.

The new joint venture, named Smart Time Technologies Limited, will also open an Internet infrastructure and engineering technology research and development center. The partnership is expected to further strengthen the technological collaboration between the two companies.

Like Us on Facebook

"This critical partnership will allow the [two] companies to pool resources and technologies and collaborate operationally," said Frank Meng, president of 21Vianet. "We believe that our cooperation will accelerate the development of the IDC market in China and lead it to become increasingly industrialized, modular-oriented and factory-driven."

Foxconn is an electronics manufacturing company and Apple supplier, and 21Vianet is an Internet data center services provider.

The two companies haven't publicly announced the location of the joint venture, as it could reportedly be in Guiyang, Beijing, or Tianjin. Financial terms, including ownership stakes and capitalization requirements of the new company have not yet been released.

Smart Time Technologies will serve as the operating entity in both domestic and foreign IDC markets, and it will be responsible for data center planning, design, construction, project financing, and operations and maintenance, among other services, said Vianet21.

Demand for IDC services has experienced strong growth in both in China and abroad. The Chinese IDC market reached 26 billion yuan ($4.25 billion) in revenues  in 2013, which marks a six-fold increase over the previous five years, according to 21Vianet citing third-party sources.

"We believe the Joint Venture will facilitate the vertical integration of the IDC value chain, helping to build a complete cloud computing eco-system," said Huifeng Wu, vice president of Foxconn Group.

The Smart Time Technologies joint venture will initially focus on developing and operating IDC and related internet infrastructure services in Tianjin, Shenzhen and Guiyang. This will eventually expand to include Singapore, Hong Kong and other markets. The two large-scale data centers in Tianjin and Shenzhen are scheduled for deployment in 2015.

TagsFoxconn, 21Vianet, Smart Time Technologies Limited, joint venture, develop a global supply chain for the Internet data center and cloud computing infrastructure markets, global supply chain, Cloud computing, Frank Meng