Hangzhou, the capital of China’s Zhejiang province and home to 9.4 million people, has opened an “esports town” within city limits. The 3.94-million-square-foot area cost roughly $287 million to build. It should become the center of competitive gaming in the region.

Hangzhou government to run the place

Opened to the public on Nov. 16, the project is among the biggest esports initiatives in China. According to the news release, the government of Hangzhou will operate the esports town and oversee its development.

With a planned budget of $2.22 billion, 14 more esports facilities are expected to be completed in the “town” by 2022. These will include an esports college, esports-themed hotels, R&D centers, a rehabilitation center, and an esports business center.

The announcement also sheds light on the city’s expectations for spectators and revenues. By 2022, the government estimates to attract 2 million tourists, 1,000 esports companies and institutions, 10,000 esports pros, and organize about 1,000 esports competitions. An estimated $140 million in tax revenues is also expected.

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In September 2022, Hangzhou will host the 2022 Asian Games. It’s expected to include esports as a medal event for the first time ever.

LGD Gaming, Allied Esports have already established presences

Chinese esports organization LGD Gaming and California-based esports entertainment company Allied Esports are involved with the new esports town. Opening an office and a venue should help them manage their interests in the area.

A partnership signed between the two earlier this year has resulted in LGD and Allied opening one of the first venues in the new esports town. The facility should serve as LGD’s home spot for the League of Legends Pro League, a Tier 1 LoL competition in China.

Identifying the growth of esports and demand for entertainment space, Allied Esports has been very active to satisfy this desire in the industry. Since its founding in 2016, the company has created a portfolio of arenas with locations in Santa Ana in California and Las Vegas, as well as Tianjin, Shenzhen, and Beijing in China.