Huawei Technologies will spend $632.52 million to build a new headquarters and R&D centre for its digital power unit as the Chinese telecom giant diversifies amid U.S. pressure.

It signed an agreement on Thursday (17th February) with the local government of the southern metropolis of Shenzhen, where its parent is headquartered, for the project, said a release yesterday.

Huawei has been trying to diversity its portfolio beyond its core telecoms and smartphone businesses, which have been hit hard in recent years by U.S. export restrictions.

In January, Huawei Digital Power and China Resources Power Holdings Co Ltd (0836.HK), which operates coal-fired power plants across China, signed a cooperation agreement to develop clean energy projects such as big data platforms for solar panels, energy storage systems, and smart power plants.