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CenturyLink announced the launch of its first data-center location in mainland China on September 29, 2014. Located in Shanghai’s Waigaoqiao Free Trade Zone, the facility offered enterprise hosting, cloud, security and networking services through a local operating partnership.

What CenturyLink launched in Shanghai

The Shanghai site was CenturyLink’s first location in mainland China. It was an enterprise managed-services environment, not a consumer cloud product. Customers could use managed hosting, security, cloud and networking solutions, with colocation also available for organizations building a hybrid environment.

The company described the launch as a way to extend its managed-services offering into China while giving customers a consistent experience with its services elsewhere. CenturyLink managing director for Asia Pacific Gery Messer said the company was “offering access to the same highly secure managed services and consistent IT experience available across our global footprint.”

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Who operated and supported the service

The service combined CenturyLink’s global management with local facility and network partners:

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  • GDS operated the data-center facility in Shanghai’s Waigaoqiao Free Trade Zone.
  • Neusoft served as CenturyLink’s local IT-services partner, providing on-site assistance—the local “eyes and hands” in the facility.
  • Citic Telecom CPC provided network services.

CenturyLink designed the environment and managed it remotely. Customers continued to use CenturyLink’s global portal, management team and support desk, while Neusoft supplied local on-site support.

Why host data inside China?

CenturyLink pointed to data sovereignty, latency and the performance effects of cross-border traffic through China’s Golden Shield, commonly called the Great Firewall. Keeping workloads in-country could help enterprises address data-location requirements and avoid some of the delay or disruption associated with routing traffic across the border.

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At the time of the launch, CenturyLink senior vice president of international development Brian Klingbeil put the company’s position plainly: “Enterprises wanting to compete in China need to host their IT in China.” That was CenturyLink’s rationale for the location, not a claim that every organization or workload was legally required to use an in-country data center.

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In-country hosting versus cross-border hosting

Consideration Hosting in China Hosting outside China
Data location Workloads can be hosted within China, which may help address data-sovereignty needs. Data remains outside China; organizations must assess whether that suits their requirements.
Latency and performance May reduce reliance on cross-border traffic for users and systems in China. Cross-border routing can affect latency and performance, a concern CenturyLink cited when announcing the Shanghai site.
Regulatory considerations Can support an in-country approach, but does not by itself establish regulatory compliance. Organizations need to consider the rules and operational implications applicable to their data and services.
Local support The Shanghai model paired local on-site support from Neusoft with GDS facility operations. Local facility support depends on the provider and arrangement; the 2014 announcement does not specify a general alternative.
Global management experience CenturyLink said customers could retain its global portal, management team and support desk. Management arrangements vary by provider; no single model is established by the announcement.

The choice depends on where users and systems are located, where data needs to reside, and how an organization handles compliance and operations. CenturyLink’s Shanghai announcement presented in-country hosting as one enterprise option that combined local infrastructure and support with the company’s existing global service model.

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What the announcement did not specify

The announcement did not publish the facility’s capacity, rack count, floor area, pricing, customer count or revenue. It therefore supports describing the services and operating partnerships, but not estimating the site’s size or commercial scale.

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