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Alibaba Cloud is getting ready to open its second information centre in South Korea by the top of June 2025, as demand for AI infrastructure grows within the area. The transfer provides to the corporate’s efforts to increase internationally and maintain tempo with the rise in curiosity in generative AI instruments and companies.
“Our continued investment in local infrastructure is tied to the growing use of AI technologies in different industries,” stated Yoon Yong-joon, Alibaba Cloud’s nation supervisor for South Korea. “The new data centre will help customers run more flexible and reliable systems built for AI.”
Data centres play a central position in cloud computing by giving customers entry to storage, software program, and {hardware} over the web. In South Korea, demand for this infrastructure is rising quick. Analysts estimate the nation’s information centre market was price between US$5 billion and US$9.6 billion in 2024, with projections nearing US$10 billion by 2030. Seoul stays the important thing hub, supported by community density, main enterprise customers, and public-sector backing.
Growth in edge computing can be anticipated to speed up, with the native market projected to extend from US$178 million in 2024 to greater than US$2.2 billion in worth by the top of the last decade. National programmes targeted on AI, sensible cities, and digital companies have added additional momentum.
Alibaba Cloud entered the Korean market in 2016 and launched its first information centre in Seoul in 2022. The firm now operates 87 availability zones in 29 areas. Its facility in Seoul was constructed to satisfy native necessities round information dealing with, and lower latency for purchasers. By organising infrastructure on the bottom, Alibaba Cloud has been in a position to supply options to bigger US suppliers like AWS and Microsoft Azure. Its companies are utilized in sectors together with e-commerce, logistics, gaming, and AI.
In South Korea, firms like Univa and the Naver-backed app Snow have used Alibaba Cloud’s AI fashions to develop their companies. Snow provides real-time options like video filters and AR instruments, that are more and more in style in Asia. Univa applies cloud-based AI to enhance its enterprise choices, serving to velocity up mannequin coaching and inference.
Alibaba’s broader funding in AI has additionally been ramping up. According to the South China Morning Post, the corporate has put aside greater than US$50 billion for the following three years to strengthen its AI infrastructure – roughly matching half the early funding within the US-based Stargate AI initiative. Its open-source Qwen fashions have gained traction amongst builders, and the cloud unit stays a key a part of the group’s long-term technique.
In Q1 of this 12 months, Alibaba Cloud’s income rose 18 per cent to 30.13 billion yuan (about US$4.15 billion), marking its quickest progress in three years.
(Photo by Lightsaber Collection)
See additionally: AWS commits US$13b to Australia information centres
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