The facility is an extension of the IBM China Research Laboratory in Beijing, one of IBM's eight research labs worldwide.
"Our extension in Shanghai adds to the significant research and development presence in China and increases China's position as an innovation hub for IBM," Dr. Thomas Li, director of IBM's China Research Laboratory, said in a statement.
In addition to cloud computing, the Shanghai campus will focus on information analytics, Web-delivered service computing, and stream computing.
Cloud computing is emerging as a buzz phrase these days but does represent a significant shift in computer cycle resource pooling and server consolidation as organizations are facing extreme data overload and skyrocketing energy costs.
To help understand how IBM and other companies large and small are approaching cloud computing, InformationWeek has published an independent report on the subject. Download the report here (registration required).
IBM said its research division's work in this area includes an exploratory system that monitors comprehensive factors such as application workload, resource utilization, and power consumption to intelligently schedule the workload migration and save unnecessary power consumption.
The lab also will focus on integrating service science, management, and engineering (SSME) into the Chinese university curriculum. The company said it recognizes the growing importance of servicing education efforts in China in the global economy. IBM said it's offering SSME as an academic discipline to develop the skills required to bring together computer science, operations research, industrial engineering, business strategy, management sciences, social and cognitive sciences, and legal sciences.
"The establishment of IBM Research in Shanghai reflects both the rich pool of science and engineering talent in China as well as our continued commitment to expand our collaboration with Chinese enterprises and academic institutions," Dr. John E. Kelly III, IBM's senior VP and director of IBM Research, said in a statement.