AI-Driven Growth Targets Key Markets Including Mexico, Malaysia, and South Korea
Alibaba (BABA) is expanding its global cloud computing footprint, marking a significant move into Mexico for the first time. The Chinese technology giant announced plans to build new data centers in Malaysia, Thailand, and South Korea over the next three years, signaling a renewed push for growth in the international market.
This expansion comes after a turbulent period for Alibaba Cloud, which included scrapping a planned initial public offering and undergoing a management reshuffle. To regain momentum, Alibaba is focusing on attracting more customers and leveraging its advanced AI products.
On Thursday, Alibaba Cloud’s international division head, Selina Yuan, emphasized the importance of investing in international data centers to support this growth. The expansion aims to boost Alibaba’s presence in the global cloud market, where it currently holds just under 5% of the market share, compared to Amazon, Microsoft, and Google, which dominate with around 67% combined.
In China, Alibaba leads with 39% of the cloud market and is a top player in Asia. Despite recent slowdowns, Alibaba executives project a return to double-digit growth for the cloud division in the latter half of the fiscal year. The company’s AI capabilities, including its large language model Tongyi Qianwen, are central to this strategy. These AI tools are already being used by major clients like French luxury brand LVMH.
Selina Yuan highlighted AI as the future of cloud computing, noting Alibaba’s robust strategy and potential to enhance services for businesses and partners worldwide.
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