Director Hong continued:
"The Jizhou SASAC will provide Xingyi Technology with 200 mu of industrial land for a cloud data center free of charge..."
"Wait! 200 mu of land?"
Director Lin from Daocheng panicked, unable to resist interrupting Director Hong:
"You just said... how many servers?"
Director Hong smiled slightly, full of pride:
"Not many, Chairman Wang said it's just a small data center, with only 100,000 servers!"
"!!!"
Director Lin wanted to curse:
"Your family's small data center has 100 mu of land and 100,000 servers? What kind of joke is that!"
In 2011, a data center with no more than 500 servers was considered a small data center.
500-2,000 servers, a medium-sized data center.
2,000-10,000 servers, definitely a large data center!
And a data center with over 10,000 servers was absolutely a super-large data center!
As for a single data center with 100,000 servers... in 2011, it would be considered an extremely formidable colossal data center!
Calling it the national number one, or even the global number one, would be no problem.
Even Baidu, the leader of BAT, only reached 100,000 servers when all its data centers were combined.
For a moment, Director Lin was filled with regret, but could do nothing.
Sometimes being one step late means losing everything.
He thought it was just a medium-sized cloud data center, and it would be fine if Jizhou snatched it away, at most 5,000 servers.
After all, data centers are very expensive, and Xingyi Technology had only been developing for a short time, so a medium-sized data center with 5,000 servers would be sufficient.
But who would have thought that they would start with a colossal data center of 100,000 servers!
A data center of this scale, once built, would be the largest in the world, and with infrastructure, network construction, and server equipment, would require an investment of at least three billion!
What a huge loss!
But now, everything was too late.
Jizhou had received the news two days earlier and had already put forward incredible preferential policies, making it a sure thing.
Daocheng had only just received the news, it was utterly too late, completely too late!
Director Hong ignored Director Lin's grim expression and continued:
"Jizhou plans to invest 1 billion in infrastructure costs to build a 100-mu cloud data center industrial park for Xingyi Technology, with a planned construction area of 100,000 square meters, planning to build one comprehensive building, five data center buildings, five diesel generator buildings and two 110KV substations, as well as various supporting auxiliary areas, support area buildings, and so on."
"The project will be carried out in two phases, of which Phase I can accommodate 3,000 cabinets and deploy over 40,000 servers."
"Phase II can accommodate 5,000 cabinets and deploy over 60,000 servers."
"After the entire cloud data center industrial park is completed, it can accommodate over 8,000 cabinets, provide data rooms capable of housing an IT equipment load of 70668kW, and deploy over 100,000 servers!"
"Of course, servers and other IT equipment need to be purchased by Xingyi Technology itself."
"In addition, there is an additional 100 mu of vacant land for data centers, which Xingyi Technology can develop itself for subsequent Phase III and IV projects. If not developed within five years, the SASAC will reclaim it."
Director Hong's meaning was clear: they were giving land for over 200,000 servers, but could only help build the Phase I project for 100,000 servers.
No choice, data centers are too expensive.
For the Phase I and II data center industrial park with 100,000 servers, infrastructure alone would cost 1 billion, not including land costs and the money for network equipment and IT equipment.
Phase III and IV, another 100,000 servers in scale, would require another 1 billion, which Jizhou couldn't bear, so you would have to build it yourself.
In five years' time, if it could be built, the 100 mu of industrial land would be given for free.
If it couldn't be built, the 100 mu of land would be directly reclaimed, and Jizhou wouldn't suffer any loss.
"Of course, for the Phase III and IV data centers, if Xingyi Technology invests in their construction, they will also enjoy electricity price subsidies, and will uniformly be charged 0.35 yuan per kWh!"
This was already the greatest sincerity Jizhou could offer.
Song Sining was overjoyed; such a policy was even better than expected!
"Thank you, Director Hong, please give me some time, I'll contact Chairman Wang."
"Alright, go ahead!"
Director Hong said with a smile, confident of success.
With such a policy, Jizhou providing real money subsidies, and Daocheng having lost the initiative, it was impossible for them to match.
Song Sining walked to the adjacent room and called Wang Yi:
"Chairman, the cloud data center policy offered by Jizhou..."
After listening, Wang Yi was startled:
"Free infrastructure? An extra 100 mu of industrial land given for a second industrial park with 100,000 servers? Electricity at 0.35 yuan per kWh? That cheap!"
Wang Yi remembered that in his previous life, Harbin City, to attract cloud data center projects, had launched a preferential policy for large cloud data centers, charging 0.35 yuan per kWh!
He hadn't expected Jizhou to have such courage, also achieving 0.35 yuan per kWh, cheaper than residential electricity.
Indeed, a single data center with 100,000 servers would be nothing special ten years later, but in 2011, it would absolutely be the global number one!
For the world's largest single cloud data center, it was natural for Jizhou to offer such a policy.
The biggest costs for a data center, besides initial infrastructure costs, are server and other IT equipment costs, and electricity!
For a data center industrial park with 100,000 servers, infrastructure alone would cost around 1 billion.
As for servers, even with bulk procurement and cheaper domestic prices, if each costs 10,000 yuan, 100,000 units would cost 1 billion!
Adding other equipment expenses, it would also be several hundred million.
It can be said that a cloud data center with 100,000 servers would require a total investment of around 3 billion.
Even with Jizhou providing 1 billion for infrastructure, Wang Yi would still have to invest an additional 2 billion to get it running.
As for the 100 mu of vacant land, if built, it could also accommodate 100,000 servers, but Wang Yi would have to invest another 3 billion!
And subsequent electricity consumption would be an even greater expense.
Even with a PUE of 1.36, 100,000 servers would consume 357 million kWh of electricity annually!
At 1 yuan per kWh, the annual electricity bill would be 357 million yuan!
With Jizhou subsidizing it down to 0.35 yuan per kWh, the annual electricity bill would only be 125 million yuan!
Saving 232 million yuan in electricity costs annually, over ten or twenty years, that's 2.32 billion, or even 4.64 billion!
This calculation, Wang Yi had to make.
If a data center were built in the northwest, perhaps the temperature would be lower, reducing cooling costs.
But Wang Yi was not familiar with the local area, making it difficult to secure policies as preferential as Jizhou's; electricity prices would be more expensive, and even with lower temperatures, it might not be cost-effective.
Of course, subsequent other cloud data centers... could be placed in the west or north.
For example, Guizhou Province's data center base, once approved, with lower temperatures and preferential policies in place, would be the best choice.
But now, this policy hasn't been implemented yet!
Wang Yi was even preparing to find Director Qin to offer suggestions!
"Sining, the cloud data center will be located in Jizhou!"
Wang Yi decisively agreed.
No choice, the other party's offer was too high, there was no reason to refuse!
As for the other 100 mu of land, for Phase III and IV projects, that's not urgent.
With a five-year time limit, they could certainly wait a couple of years to see the situation before deciding.
After all, Jizhou's electricity subsidy of 0.35 yuan per kWh and tax incentives were truly attractive!
Moreover, once all four phases on 200 mu of land are completed, it could reach 200,000 servers!
Simply terrifying!
"Okay, Chairman. Also, the smart TV factory will be located in Daocheng, the tablet factory will be located in Jizhou. The remaining smart home factory is also estimated to be located in Daocheng."
"Alright."
Wang Yi decisively agreed:
"It's about as expected, no excessive restrictions, you can go ahead and sign."
"Okay!"
Ending the call, Song Sining smiled slightly:
"Director Hong, a pleasure to cooperate!"
"A pleasure to cooperate!"
Director Hong breathed a sigh of relief.
Without any surprises, the cloud data center would be located in Jizhou.
Mainly because the other party offered too much!
Director Lin was a bit envious, but still said:
"Jizhou has a cloud data center, so the smart home factory must be located in Daocheng. After all, Daocheng has white goods giants like Haier, Hisense, and Aucma, with a rich electrical appliance industrial belt, making Daocheng the most suitable place for a smart home factory..."
"Alright, I have no objections."
Director Hong grinned; having secured the data center with the most single servers in the world, he was already content.
The rest didn't matter.
At this point, the dust settled.
The tablet factory and the cloud data center are located in Jizhou.
The smart TV factory and the smart home factory are located in Daocheng!
The main idea was to share the benefits evenly!
Subsequently, Song Sining signed on behalf of Wang Yi with both parties.
This time, in order to secure Xingyi Technology's factories, the restrictive conditions proposed by both sides were also very simple.
They were merely about when construction would be completed, when delivery would take place, how long it would take for revenue to reach a certain amount, and if not met, Xingyi Technology would have to pay construction costs...
And for the cloud data center, it was even simpler: Phase I of the data center industrial park would be delivered in August 2012 and estimated to be operational by October.
Phase II would be delivered in March 2013.
Xingyi Technology was required to have over 50,000 servers in its data center by the end of 2013.
By the end of 2014, the number of data center servers must exceed 80,000.
If these targets were not met, Xingyi Technology would need to pay 1 billion yuan in industrial park construction costs.
In reality, once a data center is built, it will be used as quickly as possible.
After all, the sooner a data center is operational, the sooner it generates profit.
With so many servers, even if Xingyi Technology couldn't use them all, it could launch Xingyi Cloud services and rent them to other businesses, guaranteeing huge profits.
In a single day, three major factories and one colossal data center were agreed upon; both Jizhou and Daocheng were in great spirits.
Although both parties had to invest upfront, the taxes, GDP, and employment generated later would be invaluable.
Moreover, such high-tech industries can also form industrial clusters, helping cities achieve industrial upgrading!
The political achievements behind this, fiscal revenue, employment, GDP, etc., are all highly profitable.
Local governments are not afraid to invest real money in businesses; they are only afraid that the investment will go to waste and leave a mess that is hard to clean up.
But a high-quality company like Xingyi Technology is definitely not in that category.
On this point, both Jizhou and Daocheng were very relieved.
Song Sining was in an even better mood; this year Xingyi Technology developed rapidly, next year several major factories will be established and Phase I of the data center will be operational, Xingyi Technology's development will only become more formidable!
"Thank you for the support, leaders."
Song Sining said with a smile.
Director Hong waved his hand:
"President Song, you're being too kind; to be able to develop together with Xingyi Technology and achieve a win-win situation is also an opportunity for our Jizhou!"
Director Lin also spoke with a smile, handing over his business card:
"President Song, Daocheng has excellent resources and strong capabilities, feel free to contact me for any future projects. We will definitely provide ample preferential policies! Here's my business card, feel free to contact me if anything comes up!"
Director Hong burst into laughter; this was clearly an attempt to poach!
But there was no choice, Xingyi Technology's operations were too large, and Jizhou couldn't handle it all.
Jizhou had the Xingyi mobile phone factory, Xingyi tablet factory, Meiyou Technology, two large clothing factories, a cosmetics factory, and the Xingyi data center, which was already enough.
If these industries could be developed well, Jizhou's future would certainly be infinitely brilliant.
To invest in others, their energy was also limited; it was better to take it step by step.
Director Hong said with a smile:
"President Song, please rest assured, we will expedite the progress and delivery of the factories as quickly as possible. As for the data center here, we will quickly assemble experts and formulate a plan; if Xingyi Technology has any ideas, feel free to put them forward!"
Song Sining nodded:
"Thank you, Director Hong, to be honest, for the data center plan, Chairman Wang has also organized relevant experts to conduct some research. I will arrange for these people to come to Jizhou, and we can research the specific plan together!"
"Good!"
As for industrial parks for TVs, tablets, etc., that's quite standard; adapting to local conditions, with convenient transportation, and equipping them with advanced production lines would be sufficient.
But a cloud data center, especially the current largest cloud data center, needs careful research.
After parting with the directors, Song Sining, her bodyguard, and legal assistant left together.
On the way, Song Sining called Wang Yi:
"Chairman, everything has been settled; Phase I of the cloud data center will be delivered in August next year and is estimated to be operational by October. The other factories will be delivered and operational before June next year."
"Very good, this efficiency is excellent,"
Wang Yi said with a smile.
Song Sining's tone shifted:
"However, the design plan for the cloud data center still needs to be researched and implemented by both sides together."
Wang Yi nodded:
"Alright, a few experts and I have already designed some. In that case, I'll have them travel to Jizhou tomorrow!"
"Okay, I'll arrange the reception!"
Song Sining said with a smile:
"However, we need to order the servers in advance. They will be needed in eight months. Should we visit Inspur for an inspection?"
Wang Yi thought for a moment:
"Not yet, I need to personally oversee the data center design plan. Once Sogou is settled, I'll go back to Jizhou. At that time, I'll also visit Inspur, and if it's suitable, I'll invest!"
Wang Yi understood the future development model of data centers; if it were anyone else, without his foresight from rebirth, they would have to personally participate in the research of the design plan.
Song Sining fell silent: "..."
Since mobile phones sold well and Xingyi Technology's cash flow exceeded 10 billion, Wang Yi began a mode of aggressive investment.
Before, it was fine, only acquiring films and TV series.
Now, it's better, directly investing in companies!
He had previously invested in BYD, New Classics Media, and Goertek, and now wanted to invest in Inspur!
What Song Sining didn't know was that Wang Yi not only wanted to invest in Inspur, but even wanted to acquire Inspur!
The previous Goertek, with a market value of 18 billion, Wang Yi couldn't afford to acquire.
Furthermore, Goertek's prospects were limited, and there was no value in acquiring it.
But current Inspur Information, with a market value of just over 3 billion and brilliant prospects, Wang Yi wanted to acquire directly!
Once Xingyi Semiconductor goes into production, server chips could also be researched and produced.
Additionally, with future expansions of Xingyi Cloud data centers, millions of servers would be needed.
Xingyi Technology could even develop its own servers a few years later.
But starting from scratch to recruit talent, build a team, develop servers, and develop server systems, etc., would also require an investment of billions.
Not to mention the money, it would take even more time!
How could it be faster than directly acquiring Inspur Information?
Besides, Inspur's current market value is 3 billion, and in three to four years, it could reach 20 billion; in his previous life, it even soared to 90 billion, though it later fell to 60 billion!
But regardless, a return rate of twenty to thirty times would be worth it!
More importantly, Xingyi Technology would spend 1 billion just on purchasing servers.
After acquiring Inspur, they could directly form a team and develop customized next-generation servers according to Wang Yi's requirements.
By then, not only could Phase II of the Xingyi data center use them, but they could also be sold externally!
The only trouble was that Inspur Information's largest shareholder was its parent company, Inspur Group!
And Inspur Group's largest shareholder was the provincial SASAC!
In other words, Inspur Information's parent company was controlled by the SASAC!
This would be difficult.
Inspur Group had three subsidiaries: Inspur Information, Inspur Software, and Inspur International.
Among them, Inspur Information focused on hardware R&D such as servers, and its software also primarily revolved around servers and cloud computing.
Inspur Software focused on government software, such as smart city solutions.
Inspur International naturally handled international business.
Although there were three subsidiaries, Inspur Information's scale and market value were ten times that of the other two combined!
Wang Yi wanting to acquire Inspur Information would be almost equivalent to hollowing out the entire Inspur Group, and the SASAC probably wouldn't agree.
But it's fine; even if the acquisition failed, he could still invest a bit.
For example, investing 1 billion in Inspur Information to acquire about 30% of the shares and become the second-largest shareholder, would also be good!
Given Wang Yi's relationship with the province and cities, such cooperation would still be fine.
Currently, Inspur's development was hindered and it lacked funds; introducing others, the SASAC might not feel at ease, but introducing Wang Yi would not be a problem.
After all, Xingyi Technology had just signed agreements within the province for a cloud data center, mobile phone factory, TV factory, tablet factory, and smart home factory...
as well as the previously commenced Meiyou Technology Park, and the county clothing factory that started construction a while ago...
and real estate projects and skyscrapers that would start construction in a few years!
With so many businesses, Wang Yi, Jizhou, Daocheng, and Lusheng were already deeply strategically bound.
The matter of investing in Inspur could be pursued gradually.
When returning to Jizhou to research the data center design plan, he could easily take the time to finalize the Inspur Information matter.
Subsequently, Wang Yi came to the cloud data center department.
As the saying goes, 'Troops and horses not yet moved, provisions and fodder go first.'
Even before acquiring Xiao-i Robot, Wang Yi had asked Jian Ziyan to recruit some AI voice interaction experts, AI algorithm experts, and big data experts.
And Jizhou's Meiyou Technology had also long since recruited some big data elites.
Currently, Meiyou APP's content and ad recommendations are based on user profiles' tag-based recommendations, considered the 1.0 era of big data recommendations!
Although still rudimentary compared to mature big data recommendations of later generations, compared to other companies, it was considered advanced.
Big data algorithms are inherently a long-term accumulation process.
Once the Xingyi Cloud data center is built and operational and data models are gradually established, Meiyou's big data recommendations by then will no longer be the current rudimentary 1.0 version, but will quickly upgrade to version 2.0 and 3.0!
By then, Meiyou APP, Xingyi Video, Xingyi Music, etc., can all integrate big data recommendations!
By then, BAT would all tremble!
Wang Yi was eager to invest in and build a 100,000-server level data center, largely for big data recommendations!
Also to lay the groundwork for short video layouts a few years later.
Wang Yi looked at everyone:
"I have good news for everyone, the Xingyi Cloud data center matter has been settled, with a total investment of 3 billion, 8,000 cabinets, and capable of accommodating over 100,000 servers!"
"100,000 servers!"
Several big data experts were startled:
"This is amazing! Is it a single building?"
"It shouldn't be a single building; if it were a single building with 100,000 servers, it would be the global number one!"
Wang Yi smiled slightly:
"Yes, it's a single building, located in Jizhou."
Hearing this, everyone was shocked:
"Amazing! Absolutely amazing!"
"Chairman, when will construction begin and when will it be completed, it will take two or three years, right?"
"At least three years, for such a huge project!"
Wang Yi waved his hand:
"We need to finalize the plan as soon as possible now, construction will begin next month. The data center is divided into two phases: Phase I will be delivered in August next year, and Phase II in March the year after next."
"That fast!"
The experts were at a loss for words.
A 3-billion-yuan project, for other giants, just raising funds would take over a year to complete.
But with Wang Yi, it would be entirely completed in just over a year.
"Funding is not an issue, but the construction plan must be implemented as soon as possible,"
Wang Yi said solemnly:
"Today, let's first determine the broad direction, tomorrow, all of you will go on a business trip to Meiyou Technology in Jizhou. Liaise with the Jizhou side and jointly finalize the ultimate design plan!"
"Yes!"
Everyone responded decisively; for such a grand project, the largest single data center, everyone was eager to participate.
They might even make history.
In a few years, data centers with 100,000 servers in a single unit might become common.
But in these two years, it had never appeared!
Wang Yi and the big data department researched for a day and finally set the broad direction.
In particular, several directions proposed by Wang Yi based on future developments greatly optimized the data center's resource utilization and cooling efficiency.
Even if it was said to exceed 100,000 servers, even 120,000 units would not be a problem.
If conditions permitted, Wang Yi even considered recovering the heat generated by the Xingyi Cloud data center through waste heat recovery for winter heating for nearby Jizhou residents!
In this way, the heat generated by the Xingyi data center in winter would not only not be waste heat, but would be transformed from waste into treasure.
After all, heating costs are also very high.
Of course, this would require specific analysis based on the actual location; if the heat recovery cost was too high, even higher than heating costs, then it would not be worth it.
Wang Yi checked the time:
"It's time to get off work, let's stop our research here for today. Everyone go home tonight and pack your things for a business trip to Jizhou next. You'll probably be staying in Jizhou for a while; of course, you can come back on weekends, we all have direct buses!"
"Yes!"
Everyone responded in unison and went back to their respective places.
In the future, their workplace will most likely be in Jizhou, at the Xingyi Data Center.
As for building a data center in the Imperial Capital... that's unrealistic.
The Imperial Capital faces tight electricity supply and water scarcity, so a major energy consumer like a data center is not very suitable.
Wang Yi was about to get off work when he received a call from Zhang Yang:
"Chairman Wang, after my consideration over the past few days and communication with the board of directors, we have agreed in principle to package and sell Sogou to you."
Wang Yi smiled; Old Zhang had indeed broadened his perspective.
Rather than Sohu and Sogou fighting on two fronts and failing on both.
It would be better to sell one side, concentrate resources, and focus on promoting the other!
"Congratulations, Chairman Zhang, the future of Sohu is promising!"
Zhang Yang chuckled:
"Hehe, I'll take your auspicious words. However, the board of directors won't agree to 1.5 billion."
Wang Yi's mouth twitched; what do you mean the board of directors won't agree, it's Old Zhang who thinks it's too little, right!
"What did the board of directors say?"
"The board of directors said, at least 1.8 billion!"
Wang Yi fell silent: "..."
"Old Zhang, that's unfair; it was only 1 billion a year ago, and now you're saying 1.5 billion is too little? 1.8 billion is impossible, that's too much!"
Zhang Yang was not surprised; when negotiating prices, it's always about asking for the sky and then bargaining down.
Since 1.8 billion was impossible, he would cut it down again:
"Chairman Wang, you're acquiring it entirely, and we still need to repurchase Alibaba's 10% stake before selling it all to you. The cost isn't low. So, I'll take a step back, 1.7 billion!"
Wang Yi argued:
"Alibaba's 10% stake was bought for 100 million; you can recover it for at most 150 million, it's not much. 1.7 billion is still too high."
After a round of bargaining, the two parties finally reached an agreement: after Sohu repurchases the shares from Alibaba and other shareholders, Wang Yi would then fully acquire 100% of Sogou's shares for 1.65 billion RMB!
As for Sogou's founder, Wang Dachuan, he was a talented individual.
If Wang Dachuan was willing to retain his shares, Wang Yi would let him continue holding 5% of Sogou's shares and remain as CEO of Sogou.
If he didn't want to retain his shares, Wang Yi would buy his shares and offer him 5% of phantom shares as an incentive to receive dividends annually!
Other core senior executives of Sogou would collectively receive 5% of phantom shares and receive dividends annually.
It all depended on their choice.
"Chairman Wang, then I will repurchase the shareholders' shares as soon as possible, and then we can proceed with the acquisition!"
Zhang Yang said with a smile, even a little impatiently.
As one of the former three giants, Zhang Yang was absolutely unwilling to let Sohu's core business be trampled underfoot by younger rivals!
For example, the founder of Youku came from Sohu and was his subordinate; now Youku was crushing Sohu Video!
The founder of iQiyi also came from Sohu and also wanted to crush Sohu Video!
Zhang Yang couldn't tolerate it!
He only wanted to sell Sogou as soon as possible, get the money, develop Sohu, and make it bigger and stronger.
Wang Yi smiled slightly:
"Then I look forward to your good news!"
After the call ended, Zhang Yang immediately contacted Jack Ma:
"Chairman Ma, I have something to discuss with you."
"Chairman Zhang, what is it, please say!"
To a former senior, Jack Ma was still very respectful.
"It's like this, our cooperation in Sogou hasn't been progressing very smoothly. I would like to repurchase Alibaba's 10% stake, what do you think..."
"Repurchase..."
Jack Ma thought of many things in an instant:
"Repurchase? What does that mean?"
"Sohu itself is struggling to cope, and now wants to fully develop Sogou? That's unrealistic! They don't have that capability!"
"Then there's only one possibility: package and sell Sogou, cash out, and then have money to develop Sohu!"
"Yes, that must be it!"
"But who is the buyer? Baidu?"
"Not likely, Baidu wouldn't be interested in Sogou's small search engine market share. Given their relationship, Chairman Zhang wouldn't sell to them either!"
"Is it Tencent? Possibly!"
"Most likely!"
"Could it be that Tencent wants to integrate Sogou + Tencent Soso to take on Baidu Search?"
(End of Chapter)