Alibaba Cloud Strengthens Asia Presence with New South Korean Facility

Alibaba to Launch Second Data Centre in South Korea to Support AI Expansion

Chinese tech giant Alibaba has announced plans to launch its second data centre in South Korea, strengthening its cloud infrastructure in Asia to support the rapid growth of artificial intelligence (AI) applications. This strategic move underlines Alibaba Cloud’s ambition to deepen its footprint in overseas markets, especially in regions with a high demand for digital transformation and advanced computing power.

The new data centre, expected to be operational by early 2026, will significantly increase Alibaba’s computing and storage capabilities in South Korea. The company cited rising local demand for AI services, cloud-native solutions, and data compliance as key drivers behind the investment. This new facility will offer high-performance computing, low-latency networking, and robust data security features aligned with South Korean regulatory standards.

Alibaba’s first data centre in South Korea was launched in 2022. Since then, the company has experienced growing interest from South Korean enterprises in sectors such as gaming, e-commerce, finance, and manufacturing. These businesses are increasingly leveraging AI to innovate, automate operations, and enhance customer experiences.

The new centre will host a range of Alibaba Cloud’s services, including AI model training, elastic computing, database management, and big data analytics. In addition to AI workloads, the facility will also support enterprises aiming to build scalable applications with strong disaster recovery and cybersecurity measures.

Selina Yuan, President of International Business at Alibaba Cloud Intelligence, said the expansion highlights the company’s commitment to enabling digital transformation in South Korea. “We aim to provide the necessary infrastructure and tools that local businesses need to grow in the AI era,” Yuan stated.

With the global AI boom pushing demand for more powerful computing infrastructure, Alibaba’s investment aligns with moves by other major players like Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. South Korea, with its tech-savvy population and strong industrial base, has become a prime location for cloud and AI expansion.

Alibaba’s strategic emphasis on Asia-Pacific markets is part of its broader shift to revive its international cloud business after facing regulatory hurdles and intense competition in China.

As Alibaba continues to invest in AI, data infrastructure, and regional partnerships, its new data centre in South Korea is poised to become a key driver in the company’s long-term cloud growth strategy.