According to local media sources, Huawei Technologies (HWT.UL) would invest 4 billion yuan ($632.52 million) on a new headquarters and R&D center for its digital power subsidiary, as the Chinese telecoms giant diversifies in the face of US pressure.
According to the 21st Century Herald newspaper, Huawei Digital Power inked a project agreement with the local government of Shenzhen, where its parent company is based, on Thursday.
According to the statement, the signing was part of a wider event conducted by Shenzhen to commemorate the start of new development projects in the city.
According to the 21st Century Herald, Huawei’s effort would help to promote the “dual carbon” supply chain, which refers to China’s objective of attaining its carbon emissions peak by 2030 and being “carbon neutral” by 2060.
A request for comment on the agreement was not returned by Huawei.
Huawei has been attempting to diversify its portfolio outside its core telecommunications and smartphone operations, which have been hurt hard by US export restrictions in recent years.
Last June, Huawei Digital Power was registered under the name of Ken Hu, the parent company’s current rotating chairman.
According to the company website, it was founded to address “the issues of the era of big data, traffic, and energy consumption,” delivering solutions such as smart data centers and assisting telecom and tower operators in achieving “green efficiency.”
Huawei Digital Power and China Resources Power Holdings Co Ltd (0836. HK), a coal-fired power plant operator in China, signed a cooperation agreement in January to work on sustainable energy projects such as big data platforms for solar panels, energy storage systems, and smart power plants.
