CHINA NEWCITY (ASX: 01321) has announced a strategic move into artificial intelligence infrastructure.
On June 6, 2026, the company entered into a non-binding strategic cooperation agreement with ZTE Development France SAS. The agreement concerns the collaborative development and construction of an Artificial Intelligence Data Center project on a technology park owned by ZTE Development France in Poitiers, France.
Key Aspects of the Project
Under the terms of the agreement, the parties have agreed to several key points. The group plans to develop and construct a high-standard AI data center covering approximately 40,000 square meters on a designated plot within ZTE's technology park in the Futuroscope high-tech development zone. This site has about 90,000 square meters of developable land. The facility is intended to support AI training and large-scale inference operations.
The project currently has access to a power load of 15-20 megawatts, with provisions to apply to local authorities and the grid for capacity expansion based on future project needs.
Both parties will jointly develop AI client resources in Europe and globally, with a focus on potential clients in the vicinity such as the University of Poitiers and the ISAE-ENSMA aerospace engineering school.
ZTE Development France retains investment rights to participate in the construction and operation of the AIDC project.
A Strategic Pivot for the Business
The company stated that the AIDC project represents a significant entry point into the artificial intelligence infrastructure sector. Through this initiative, the group can extend its existing capabilities in project investment, development, asset management, and operations into the domains of data centers, computing power infrastructure, and technology park management.
This move is expected to drive an upgrade in the group's business structure, shifting from traditional commercial property development and operation towards a dual-drive model of "real estate + technology infrastructure."
Building a Foundation for Future Growth
The collaboration is seen as a way for the group to establish experience, client resources, and a local partnership network in the European market for AI data center projects. Looking ahead, the group intends to explore replicating this high-standard AI data center investment, construction, and operational model in other European and overseas markets, contingent on the progress of this project. The long-term goal is to gradually build an international technology infrastructure business platform.
The group believes artificial intelligence infrastructure possesses characteristics of long-term growth, operational cash flow generation, and capital appreciation potential. By deploying resources into the AIDC project, the group aims to diversify its asset portfolio, enhance business growth prospects, and improve capital market understanding of its future development potential.
Comments