Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, has announced strategic plans to launch its first data centers in Brazil, France, and the Netherlands. Alibaba has also entered into a partnership with chip giant NVIDIA to accelerate AI development. These announcements, made at the company’s Apsara Conference 2025, led to a nearly 10 percent increase in Alibaba’s share prices on Wednesday.
In an official statement, the company also revealed that as part of the strategic expansion, it will also build new data centers in Mexico, Japan, South Korea, Malaysia, Dubai in the coming year. Moreover, it will set up new regional service centers in Indonesia and Germany to provide round-the-clock, multi-language customer support. Alibaba Cloud currently operates 91 availability zones in 29 regions globally.
“Our strategic expansion of global infrastructure is designed to cater for the accelerating demand from forward-thinking customers,” said Dr. Feifei Li, President of International Business and SVP of Alibaba Cloud Intelligence Group. “We are here to help partners and customers to design, launch, and scale groundbreaking AI agents and applications, fueling the next generation of digital innovation and unlocking unprecedented value in the global marketplace.”
Meanwhile, the partnership with NVIDIA is concerned, Alibaba will integrate NVIDIA’s AI development tools which include robotics, self-driving cars, and smart spaces into its cloud platform. It will also develop physical AI capabilities such as data synthesis, model training, environmental simulation and validation testing.
This news comes close at the heels of another big ticket announcement from NVIDIA about investing up to US$ 100 billion into OpenAI to deploy at least 10 GW of NVIDIA systems for OpenAI’s artificial intelligence infrastructure.