Huawei Technologies Co Ltd officially broke ground on a data center in China's southwestern Guizhou province on Wednesday, to meet the firm's growing need for better cloud services.

The move is part of a deal Huawei signed with the Guizhou provincial government last November, as the Chinese technology juggernaut intensifies resources to compete globally.

The new data center will be located in Guian New Area, Guiyang, Guizhou province. Covering 400,000 square meters，the upcoming first phase of the new center will attain 600,000 servers.

Ren Shulu, Huawei's senior vice-president, said the company aims to build an industrial park in Guian New Area.

"Guizhou province offers the ideal climate for operating data centers. It is also an important energy base in China, alongside its favorable data center polices. Taking the advantages, we will build an industrial park, which [will] serve as a global management data storage center and a base to train the talents," Ren said.

In November last year, Huawei and the Guizhou provincial government signed a cooperation agreement to work on internet of things technology, the construction of a smart city, intelligent manufacturing and the application of big data and cloud computing.