Alibaba Cloud, the cloud computing division of Chinese technology conglomerate Alibaba Group, is significantly ramping up its efforts to build a comprehensive global cloud computing network. Alongside this expansion, the company is prioritizing the internationalization of its artificial intelligence-powered products, aiming to facilitate the overseas market expansion of Chinese enterprises. Wu Yongming, CEO of Alibaba Group and Chairman and CEO of Alibaba Cloud Intelligence Group, emphasized that global expansion is an unavoidable trajectory for Chinese businesses, especially as China establishes leadership in advanced technologies like 5G, artificial intelligence, and smart vehicles. He anticipates that Chinese enterprises will exert greater influence on the global stage due to the increasing spillover effects of their technologies, supply chains, services, and brands.

The envisioned global network by Alibaba Cloud is set to encompass key regions including China, Japan, South Korea, Southeast Asia, the Middle East, Europe, and the Americas. This expansive plan builds upon an already substantial global infrastructure, which currently comprises 87 zones spread across 29 regions. With a portfolio of 394 cloud and AI products and 59 technical services, Alibaba Cloud has solidified its position as the largest cloud service provider in the Asia-Pacific region. Wu Yongming further stated that the company will intensify its globalization efforts, particularly in the realm of large language models, and will bolster its investments in overseas consulting, technology development, and service team construction.

A cornerstone of this strategic direction is a massive financial commitment. Alibaba Group recently declared an investment exceeding 380 billion yuan (approximately $52.78 billion) dedicated to constructing cloud and AI hardware infrastructure over 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 Yongming highlighted. He elaborated that substantial resources will be channeled into the research and development of AI applications and computing power. Furthermore, Alibaba Cloud intends to deeply integrate AI across all its business segments to unlock new growth avenues in the burgeoning AI era.

Tangible examples of this global expansion include the recent launch of Alibaba Cloud's first data center in Mexico. This facility, marking the company's inaugural data center in Latin America, is designed to provide cloud computing services to local businesses and developers. This move underscores Alibaba Cloud's dedication to accelerating Mexico's digital transformation and fostering innovation throughout the Latin American region. Selina Yuan, President of International Business at Alibaba Cloud Intelligence, commented on the new Mexican facility, stating, "By leveraging the company's global network, Mexican companies can tap into other markets, especially those in Asia."

In another significant development, Alibaba Cloud announced in mid-February the commencement of operations at its second data center in Thailand. This expansion is strategically aimed at meeting the country's escalating demand for cloud computing services and to provide robust support for generative AI applications. The Thai data center has already proven instrumental in supporting businesses across diverse sectors such as technology, media, retail, fintech, and public services, enabling local enterprises to enhance operational efficiency and expedite their digital transformation journeys. "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," Selina Yuan added, emphasizing the growing importance of AI infrastructure.

The increasing reliance on data centers for hosting and managing computing infrastructure for AI projects is a key trend. Pan Helin, a member of the Expert Committee for Information and Communication Economy under the Ministry of Industry and Information Technology, provided an expert perspective, advising, "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."

The broader market context supports Alibaba Cloud's strategy. According to global market consultancy Canalys, worldwide spending on cloud infrastructure services reached $321.3 billion in 2024, marking a 20 percent year-on-year increase. A primary catalyst for this growth was the proliferation of AI models, which significantly accelerated cloud adoption. As competition within the AI market intensifies, cloud computing companies are planning further substantial investments in cloud and AI infrastructure throughout 2025 to meet the continuously rising demand. Canalys forecasts that global cloud infrastructure services spending will grow by another 19 percent year-on-year in 2025. Demand is anticipated to grow exponentially as AI technologies become more efficient and are adopted more widely. In response, cloud service providers are making significant investments to expand AI model training, deployment capabilities, and cloud-based applications globally.