Alibaba Cloud eyes faster globalization

Visitors check out Alibaba Cloud services during a high-tech conference in Hangzhou, Zhejiang province, in September. (LONG WEI/FOR CHINA DAILY)

The cloud computing arm of Chinese tech giant Alibaba Group will accelerate the construction of a global cloud computing network and push forward the internationalization of its artificial intelligence-powered products to help Chinese enterprises expand their presence in overseas markets.

Alibaba Cloud's global network will cover China, Japan and South Korea, Southeast Asia, the Middle East, Europe and the Americas. Currently, its global infrastructure spans 87 zones across 29 regions. The company offers 394 cloud and AI products and 59 technical services, making it the largest cloud service provider in the Asia-Pacific region.

The company will speed up its globalization push in large language models and increase its investment in overseas consulting, technology and service team building, said Wu Yongming, CEO of Alibaba Group, and chairman and CEO of Alibaba Cloud Intelligence Group.

Wu said going global is an inevitable trend for Chinese enterprises and China has taken the lead in fields such as 5G, artificial intelligence and smart vehicles, adding that Chinese enterprises will have a bigger influence in the global market with its growing spillover effects in technologies, supply chains, services and brands.

Alibaba Group recently announced that it would invest more than 380 billion yuan ($52.78 billion) in building cloud and AI hardware infrastructure in the next three years. "Our planned investment in cloud and AI infrastructure over the next three years is set to exceed what we have spent over the past decade," Wu said.

He noted that the company will pour more resources into the research and development of AI applications and computing power, and deeply integrate AI across its businesses to capture new growth opportunities in the AI era.

Alibaba Cloud has announced the launch of its first data center in Mexico as part of a broader drive to accelerate the construction of digital infrastructure abroad.

The new data center, the first of its kind in Latin America, will provide cloud computing services to local businesses and developers, underscoring Alibaba Cloud's commitment to accelerating Mexico's digital transformation and fostering innovation throughout the region.

Selina Yuan, president of international business at Alibaba Cloud Intelligence, said by leveraging the company's global network, Mexican companies can tap into other markets, especially those in Asia. More and more enterprises are using data centers to host or manage computing infrastructure for their AI projects.

"With the rapidly rising demand for AI across industries, we are reinforcing our commitment to expanding our AI infrastructure and enhancing our cloud capacities worldwide," Yuan added.

Alibaba Cloud announced in mid-February that it would commence operations at its second data center in Thailand to meet the country's growing demand for cloud computing services and support generative AI applications.

The data center in Thailand has not only played a pivotal role in supporting Thai businesses across a diverse array of sectors, including technology, media, retail, fintech and public services, but also helped local enterprises enhance operational efficiency and accelerate digital transformation.

"Chinese enterprises that are making forays into overseas cloud service markets should not only improve the construction of cloud infrastructure abroad, but also enhance innovative capacities in key software applications, so as to better serve global clients," said Pan Helin, a member of the Expert Committee for Information and Communication Economy, which is part of the Ministry of Industry and Information Technology.

According to global market consultancy Canalys, global cloud infrastructure services spending stood at $321.3 billion in 2024, rising 20 percent year-on-year. The key driver behind this growth was the expansion of AI models, which significantly accelerated cloud adoption.

As AI market competition intensifies, cloud computing companies plan to further expand investments in cloud and AI infrastructure in 2025 to keep pace with rising demand. Canalys forecasts global cloud infrastructure services spending will grow 19 percent year-on-year in 2025.

Demand is expected to grow exponentially, as AI becomes more efficient and widely adopted. In response, cloud service providers are making significant investments to grow AI model training, deployment and cloud-based applications globally, it added.