Chinese search engine provider Baidu Inc. has started a new cloud computing center project in Shanxi's Yangquan, hometown of Baidu's founder Robin Li.

Baidu will reportedly invest CNY4.708 billion in this new cloud computing center, including about CNY2.92 billion for equipment and about CNY1.788 billion for infrastructure. The cloud computing center will cover an area of 360 mu and it is expected to be completed in four years.

On the completion of this new project, it will bring large economic and social benefits to Yangquan city and Shanxi province, attract the world's top information technology manufacturers, and promote the information technology industry development of Yangquan and Shanxi.

In 2010, China's National Development and Reform Commission determined to focus on the development of cloud computing and selected five cities, including Beijing, Shanghai, Hangzhou, Shenzhen and Wuxi, as the first batch of demonstration cities.