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Apple, in partnership with a local data management firm, is set to open its first data centre in China that complies with new laws that require global companies to store user data information within the country.
According to a report in The New York Times on Wednesday, the data centre would let Apple "improve the speed and reliability of our products and services while also complying with newly passed regulations".
Apple added that there would be no "back doors" inside its data centre to let the Chinese officials access users' data.
According to the report, the data centre would help Apple take on local smartphone rivals.
It would also help the tech giant offer its iOS services in a better and efficient way in the country.
The new data centre, part of a $1 billion investment by Apple, is planned in the city of Guizhou.
To boost local talent, Apple recently announced it would invest $508 million in China to build two additional Research and Development centres in Shanghai and Suzhou.
Apple's gets most of its products manufactured in China and also sources its best electronics engineers from the there.
Apple CEO Tim Cook recently defended globalisation in a rare public speech at the China Development Forum, an annual conference.
Cook also touched on cyber security and user privacy, both highly sensitive subjects in China.