Chinese technology giant Tencent has opened its first LatAm data center in Sao Paulo as part of its bid to grab a slice of the region’s growing market for cloud services.
Tencent’s cloud portfolio offers wide-ranging tools for companies in sectors such as media, gaming, and financial technology.
A Philippine game publishing studio called Level Up has already signed up to Tencent’s cloud service in Brazil.
“Brazil is a dynamic and exciting market with an increasing number of digital high-growth companies,” said Poshu Yeung, SVP, Tencent Cloud International in a press release.
Tencent is the third Chinese company to offer cloud services in Latin America after Alibaba and Huawei. The arrival of Tencent is likely to push down service prices, as the region’s cloud market is already overcrowded with the likes of Microsoft, Oracle, Google, and Amazon Web Services.
The market is so crowded that Huawei alone set up 9 availability zones in the region, with data centers in Brazil, Chile, Peru, and Mexico.
Tencent has stated in a press release that its data center would fuel “corporation” between South American and Chinese businesses, expanding business opportunities for both of them.