(Yicai) Nov. 24 -- Shares in Hongxin Electronics Technology Group advanced after the Chinese maker of flexible printed circuit boards said e-commerce giant Alibaba Group Holding’s cloud computing arm will help it build a green computing power center in northwestern Gansu province.

Hongxin's share price [SHE:300657] closed up 0.97 percent at CNY21.96 (USD3.08) today, after gaining as much as 5 percent earlier. This is despite the ChiNext price index, which is the benchmark index for the Shenzhen bourse’s ChiNext board, where the stock is traded, dipping 1.19 percent today.

Alibaba Cloud Computing will provide assistance in many areas of the project, which will be located in the city of Qianyang, from planning and design to construction and operations, Hongxin said yesterday, citing the deal signed with the Hangzhou-based company and the Qingyang administration.

The AI computing power hub will be powered using renewable energy and will be able to provide around 10,000 petaflops of computer power in two year’s time, Hongxin added, citing the deal signed with the Qingyang administration last month. The first phase should be ready at the end of March next year.

The tie-up with Alibaba Cloud will help boost Hongxin’s AI computing power server business and boost its standing in the field, the Xiamen-based company added.

Alibaba Cloud will promote the use of AI computing power servers developed by Hongxin and its partner Shanghai Enflame Technology, the developer of the AI chips it used, within its ecosystem, said Hongxin, which has been actively transitioning to AI computing power services in recent years.

The price of Hongxin-Enflame servers varies depending on the specifications, but in general each server will cost hundreds of thousands of Chinese yuan, equivalent to tens of thousands of US dollars, a Hongxin executive said last month.

Editor: Kim Taylor