Alibaba expands its global data centers in Europe and the Middle East to enhance AI services and compete with Western firms.
Alibaba expands its global data centers in Europe and the Middle East to enhance AI services and compete with Western firms.
Alibaba’s global cloud network spans from Japan to Southeast Asia and the Middle East. | Photo Credit: Dado Ruvic
Alibaba Group Holding Ltd. is accelerating its data centre expansion in Europe and the Middle East, propelling its 20-gigawatt global infrastructure buildout during China’s escalating competition in AI chips and models with the US.
The Chinese e-commerce leader will set up its first cloud regions in Turkey, Finland and the Netherlands over the next 12 months, Alibaba executive Li Feifei said at the company’s flagship Apsara conference in Hangzhou on Wednesday.
The company will also expand its data centre footprint in Malaysia, Germany, the United Arab Emirates, France and Hong Kong, a move that will boost its ability to provide localized cloud and AI services.
Alibaba’s growth push means its increasingly going head-to-head with Western competitors such as Amazon.com Group Inc. and Alphabet Inc. in regions beyond Asia. Its global ambition aligns with Chinese President Xi Jinping’s vision to share the country’s advances with the world, at a time that Trump officials want other countries to prioritize use of US technology offerings and avoid alternatives from China.
Alibaba’s global cloud network spans from Japan to Southeast Asia and the Middle East. In recent months, it opened new facilities in Brazil and France, aiming to bring generative AI services to local enterprises.
“We are committed to working closely with our global ecosystem to make AI more scalable, practical and accessible for businesses,” said Li, who serves as chief technology officer and president of international business for Alibaba Cloud Intelligence.
Alibaba kickstarted its annual tech summit in Hangzhou earlier this week, demonstrating its full-stack AI capabilities — just days before Xi embarks on his first state visit to the US in over a decade, with AI at the top of his agenda.
The company unveiled a new line of AI chips it claims are China’s most powerful and built for frontier-model training. It also said it is training new foundation models with 5 trillion to 10 trillion parameters, far larger than existing open-weight models. Underpinning this hardware-and-software push is a plan to build a 20-gigawatt global data center network by 2032 – which Citigroup estimates could drive more than $160 billion in external cloud revenue.
Averytin News Financial update.