Alibaba Cloud to Open New Regions in Three Countries by Next Year
Alibaba plans new data centers in Europe and Asia to meet rising AI demand, aiming for 20 gigawatts of capacity by 2032.
Key points
- Alibaba Cloud will open new regions in Turkey, Finland, and the Netherlands within the next 12 months.
- The company targets more than 20 gigawatts of global data center capacity by 2032.
- A Citigroup estimate links this capacity target to $160 billion in cloud revenue by fiscal 2033.
Alibaba Cloud announced plans to expand its infrastructure across Europe, the Middle East, and Asia. The company aims to challenge established global rivals in the artificial intelligence market.
The announcement came at the Apsara Conference in Hangzhou. Chinese tech firms are increasingly seeking overseas customers beyond their domestic base.
New locations targeted for launch
Alibaba will open its first cloud regions in Turkey, Finland, and the Netherlands. These launches are scheduled to happen over the next twelve months.
The company will also expand existing data centers in Malaysia, Germany, and France. This move increases its physical presence in key global markets.
The expansion directly competes with providers like Amazon Web Services. This competition intensifies in regions where local data storage is required.
Capacity targets and financial stakes
Alibaba set a target of more than 20 gigawatts of global capacity. This goal is planned for the year 2032.
A Citigroup estimate suggests this could support $160 billion in revenue. This projection is for fiscal year 2033.
The push is driven by demand for AI training and inference. Companies need local infrastructure to reduce delay and meet data rules.
Other Chinese firms join the race
ByteDance partnered with Saudi telecom Mobily to build a cloud region. This will be their first public cloud region in the Middle East and Africa.
