Data center service provider Telehouse America has expanded its presence in China by opening a new data center in Shanghai. The company launched its 39th data center worldwide by partnering with a Chinese company Shanghai Data Solution. A partnership with a native company is reportedly the only way for a foreign data center company to operate in mainland China.

The data center, located in Pudong, is the second Telehouse-branded facility in mainland China. The Telehouse brand belongs to the international telecommunications and data center provider KDDI Corp. In the region, the company also has one data center in Beijing and one in Hong Kong.

“The majority of our existing and prospective customers are international companies that require Telehouse’s consistent standard of operational and telecommunication service excellence, regardless of geography,” Telehouse Director of Sales and Marketing Fred Cannone said in a statement.

Telehouse currently has presence in 21 regions within 10 countries.

Another US-based colocation provider that recently expanded into mainland China by partnering up with Shanghai Data Solution was Equinix. The company announced the deal in March.