The company will invest $52.7 billion to accelerate its international expansion and ensure consistent AI services for Chinese companies both inside and outside the country.
Alibaba Cloud, the cloud services and artificial intelligence division of Chinese tech giant Alibaba, has reaffirmed its plans to build a unified global cloud infrastructure network, with an announced investment of 380 billion yuan ($52.7 billion). This was confirmed by Alibaba CEO Eddie Wu during a corporate event held last Thursday.
The strategy involves the accelerated expansion of Alibaba Cloud’s infrastructure in Japan, South Korea, Southeast Asia, the Middle East, Europe, and America, aiming to provide Chinese companies with a consistent AI service environment both domestically and internationally.
“Global expansion is an inevitable path for Chinese companies,” Wu stated, as quoted by Chinese media.
More than 87 Availability Zones in 29 Regions
Currently, Alibaba Cloud operates 87 availability zones across 29 regions, enabling it to offer 394 cloud computing and AI-related products, along with 59 technical services. These resources position Alibaba Cloud as the leading cloud services provider in the Asia-Pacific region, according to the company’s internal data.
So far this year, the company has opened a new region in Mexico and a second data center in Thailand, demonstrating its intention to strengthen its presence outside of China amid rising trade tensions with the United States.
A Move Against U.S. Restrictions
The push for a global network comes at a time of high geopolitical tension, particularly regarding access to advanced AI chips. In April 2025, the U.S. government imposed new restrictions on the export of Nvidia’s H20 GPUs—a limited version of the H100 chip adapted for the Chinese market—forcing companies like Alibaba and ByteDance to explore alternative ways to access these technological resources abroad.
Alibaba’s initiative aims precisely to guarantee its Chinese clients access to advanced AI capabilities from data centers outside China, legally circumventing the restrictions imposed by the U.S.
Criticism of the AI Investment Bubble
After announcing the investment plans earlier this year, Alibaba Chairman Joe Tsai warned of a potential bubble in the AI data center sector. In public remarks, he criticized the speculative models of many U.S. players:
“I start to worry when I see data centers being built without clear demand.”
These remarks contrast sharply with the capital commitments from U.S. giants: Microsoft has pledged $80 billion, Amazon up to $100 billion (including warehouses), Google $75 billion, and Meta between $60 and $65 billion.
Cloud Revenues Driven by AI
Meanwhile, Alibaba reported financial results for the quarter ending March 31, 2025. Its cloud division experienced an 18% year-over-year increase in revenue, reaching $4.152 billion, driven by “strong demand for AI,” according to the company.
AI-related products sustained triple-digit year-over-year growth for the seventh consecutive quarter, with notable adoption in sectors such as retail, manufacturing, and media.
During a conference with analysts, Wu noted that the use of AI is spreading beyond digital companies and fintechs, with more traditional industries adopting these services. “Artificial intelligence is becoming a strong catalyst for migrating to the cloud,” he emphasized.
While no new details about the global expansion were provided during the investor call, the public reaffirmation of the plans and the scale of the investment position Alibaba as one of the key players to watch in the global cloud and AI landscape.
Source: scmp