Apple Inc. (AAPL) is building its first data center in China in an effort to comply with a new cybersecurity law and to get more consumers to use its Internet services.

In a statement to Bloomberg, the company said it is developing the facility in conjunction with Chinese data management company Guizhou-Cloud Big Data Industry Co. Based in the southern province of Guizhou, the facility will be powered completely by renewable energy and is part of the company’s $1 billion investment in the country.

“The addition of this data center will allow us to improve the speed and reliability of our products and services while also complying with newly passed regulations,” the iPhone maker said in the statement. “Apple has strong data privacy and security protections in place and no backdoors will be created into any of our systems.” (See also: Apple to Open 2 New Research Centers in China)

This move comes as Chinese authorities have instituted a new cybersecurity law that is designed to give it more control over technology and the flow of information in the country. Under the law, foreign companies that provide computer hardware and services to Chinese companies in the energy, transportation, and finance markets, and those that sell to government agencies, critical infrastructure players and public services agencies, will be subject to a review by the Cyberspace Administration of China, the country’s Internet regulator.

China is implementing the new security reviews to ensure the technology is not only secure but can be controlled. In the past, tech companies bristled at the requirements, arguing the government has been pressuring the companies to provide proprietary information about their products and services. But with the market in China growing, tech companies, including Apple, are more willing to comply.  Microsoft (MSFT) recently completed a Windows 10 operating system customized for the country. One of the requirements is that cloud services be operated by Chinese companies and thus Apple’s partnership with Guizhou-Cloud Big Data. (See also: Microsoft, IBM May Get New Scrutiny From China)

For Apple, appeasing the government in China is particularly important since it is the second-largest market for the company. The company’s iTunes Movies and iBooks were blocked by Beijing last year and its market share in smartphones has also dipped as Chinese consumers await the launch of the iPhone 8 and opt for lower cost mobile phones.


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