Alibaba Cloud expands in South Korea with second data centre
The company’s AI service clients in South Korea include Naver-backed messaging app Snow and AI solutions provider Univa
Alibaba Cloud, the cloud computing and artificial intelligence (AI) unit of Alibaba Group Holding, is set to launch its second data centre in South Korea to address growing demand driven by the rapid development of generative AI.
The company said on Thursday that the new centre would be operational by the end of June, representing a significant step in its international expansion. Alibaba owns the South China Morning Post.
“In line with the rapid advancement of AI-based technologies and increasing digital demand across industries, Alibaba Cloud has been continuously expanding its infrastructure in South Korea,” said Yoon Yong-joon, Alibaba Cloud’s country manager.
“Through the launch of this second data centre, Alibaba Cloud will provide customers with more resilient and adaptable cloud environments, ultimately fostering AI innovation across various sectors and expanding the digital ecosystem,” he added.
Data centres serve as the core infrastructure of cloud computing, providing a centralised operating environment for electronic information equipment and enabling users to access data, software and hardware services through the internet anytime and anywhere.
Alibaba has pledged to invest at least US$53 billion over the next three years to enhance its AI infrastructure, as the tech giant strives to transition into a leading AI solutions provider. Its Qwen models have emerged as some of the world’s most popular open-source AI models for developers.
Alibaba Cloud entered the South Korean market in 2016 and established its first data centre in Seoul in 2022. It now operates a network of 87 availability zones across 29 regions, making it the largest Chinese cloud service provider.
In South Korea, AI solutions provider Univa and Naver-backed messaging app Snow are among some of the bigger companies that have adopted Alibaba Cloud’s AI models to facilitate the development and deployment of AI applications.
Cloud services have become a crucial pillar of Alibaba’s operations. In the March quarter, Alibaba Cloud’s revenue rose 18 per cent year on year to 30.13 billion yuan (US$4.15 billion), its fastest growth in three years.
