Apple’s mysterious North Carolina data center may not be where the company plans to store user’s data for its soon to be unveiled iCloud service. Instead, the company might be planning to release an updated version of its Time Capsule network storage appliance to handle iCloud data storage.

Time Capsule may handle iCloud data

An anonymous source that’s apparently familiar with Apple’s Time Capsule and iCloud plans told Cult of Mac that an upgraded Time Capsule will make user’s Home folder backups available through the iCloud service, but data will be stored on the device’s own hard drive. Currently, Time Capsule offers 1TB or 2TB of storage for Time Machine backups over a local network, along with a built-in Wi-Fi router just like an AirPort Extreme Base station.

The rumored Time Capsule update will work much like the Dropbox service does, letting users store files in a centralized location that automatically pushes changes in files out to all of the devices that share the same data — which in this case will include Macs, iPhones, iPads and the iPod touch.

It will also manage photo and video syncing between devices, although it won’t store app updates for iOS devices, according to the source.

There isn’t any word on when Apple will introduce the new Time Capsule model. The company could, however, use its World Wide Developers Conference keynote event scheduled for Monday morning to show off the device and its new file storage and synchronization features.

Until Apple officially announces the new Time Capsule with iCloud features, information abou the device should be treated as rumor.

Be sure to check in with The Mac Observer for our live WWDC 2011 keynote coverage on Monday. The event is scheduled to start at 10AM pacific time, and TMO will be providing steady updates on our Web site and our MacObserverLive Twitter feed.