Data center service company CoreSite Realty has won a long-term contract with China Telecom to grow its US data center footprint.

The telco will use Coresite’s facilities to offer its domestic customers online and mobile access the America.

The first location is CoreSite’s Coronado data center campus in California, which is part of the larger CoreSite Silicon Valley market.

Coresite currently has five facilities with a total of 860,000 sq ft of data center space.

The company owns a property portfolio in the Silicon Valley area that gives it access to nearly 1.3 million sq ft of space to expand.

US-based subsidiary China Telecom Americas provides data, IP and voice wholesale services to multinational companies and international carriers that need access to both US and Chinese domestic markets.

As the international traffic grows between the two largest economies in the world, there will be more demand for data centers acting as hubs to online trade from China and APAC, according to China Telecom Americas’ Joe Han.

“It was critical to find a provider that could be trusted to deliver a scalable and reliable combination of space, power and connectivity for our partner’s expanding US business,” Han said.

Any Sino-US trading hub will need the right data center infrastructure in Silicon Valley and must meet stringent security and technical requirements, he said.

CoreSite’s CEO Tom Ray said the company was “deeply honored” to work with China Telecom.

"We are confident that through this agreement, CoreSite and China Telecom will provide their strategic customer with the capacity, security and network needed to expand their business.”

In April, China Telecom announced it would use Huawei’s software defined networking technology in its data centers.