(Updates with Toshiba’s sales target in third paragraph.)

June 16 (Bloomberg) -- Toshiba Corp., the world’s second- largest maker of flash-memory chips, allied with Hewlett-Packard Co. to develop cloud-computing technologies for “smart- community” businesses.

The companies plan to jointly develop technologies that can share data on social infrastructure including water supply, transportation, telecommunications, medical and public-service systems, contributing to energy conservation, Toshiba said in a statement today.

The Tokyo-based company forecast sales in its smart- community business, including grid and building facilities, will triple to 900 billion yen ($11 billion) in the year ending March 2016. Toshiba said it created a business unit in October to oversee smart-community operations.

Toshiba fell 0.3 percent to 406 yen as of 9:41 a.m. on the Tokyo Stock Exchange and Japan’s benchmark Nikkei 225 Stock Average retreated 0.9 percent. Hewlett-Packard, the world’s biggest maker of personal computers, lost 1.4 percent to $34.26 at 4 p.m. in New York Stock Exchange trading yesterday.

--Editors: Lena Lee, Terje Langeland

To contact the reporter on this story: Pavel Alpeyev in Tokyo at palpeyev@bloomberg.net

To contact the editor responsible for this story: Young-Sam Cho at ycho2@bloomberg.net