Chinese cloud computing companies have ramped up efforts to expand their footprint in overseas cloud service markets, as an increasing number of businesses are leveraging the cutting-edge artificial intelligence (AI) technologies to bolster digital transformation and upgrades. Alibaba Cloud, the cloud computing arm of Alibaba Group, recently 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, its first 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. With the addition of this new data center, Alibaba Cloud’s global infrastructure now spans 87 availability zones across 29 regions, the company said. Selina Yuan, President of International Business at Alibaba Cloud Intelligence, said: “We are not only bringing cloud technology to support local businesses, but also building an inclusive and thriving ecosystem in Mexico together with local partners, developers and customers to foster innovation, collaboration and sustainable growth across Latin America.” Yuan added that by leveraging Alibaba Cloud’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.
The facility in Mexico was launched six days after 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 company opened its first data center in Thailand in 2022 and this latest expansion follows the company’s announcement in May that it would expand its data center network across Asia, including Malaysia, the Philippines, South Korea and a cloud region in Mexico. Alibaba Group recently announced that it would invest more than CNY380 billion in building cloud and AI hardware infrastructure over the next three years, exceeding spending in the past decade.
Tencent Cloud, Tencent Holdings’ cloud computing arm, is stepping up the push to help overseas enterprises realize digital transformation by leveraging AI-powered cloud services. The company recently announced that it will build its first Middle East data center in Saudi Arabia, with a total investment of more than USD150 million in infrastructure construction over the next few years, marking a significant step in the company’s global expansion. Hu Dan, Vice President of Tencent Cloud International for the Middle East and North Africa, said the new data center will strengthen the company’s ability to support Saudi Arabia’s digital transformation in key sectors.
According to global market consultancy Canalys, global cloud infrastructure services spending stood at USD321.3 billion in 2024, rising 20% year-on-year, the China Daily reports.
