Alibaba Cloud to launch second Data Center in South Korea

Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, has announced that it will launch its second data center in South Korea by the end of June 2025. The investment, made three years after the establishment of Alibaba Cloud’s first data center in South Korea in 2022, is in response to the anticipated demand for AI infrastructure, driven by the increased adoption of generative AI services.

In a press release, the company further revealed that with this launch, Alibaba Cloud will broaden its product offerings to include a wider selection of cloud-native, big data, and database products that better support customers’ AI applications. It aims to bring significant improvements in cloud resilience and network performance, along with enhanced capabilities for high availability and disaster recovery for core cloud products.

Yoon Yong-joon, Country Manager of South Korea, Alibaba Cloud Intelligence, said, “Through the launch of this second data center, Alibaba Cloud will provide customers with more resilient and adaptable cloud environments, ultimately fostering AI innovation across various sectors and expanding the digital ecosystem.”

Alibaba Cloud entered the South Korea market in 2016. It has since offered a variety of digital transformation services to different industries. Some of them have leveraged Alibaba Cloud’s flagship large language model Qwen, and its scalable global cloud infrastructure to deliver innovative solutions. In December 2023, Alibaba Cloud received the Korea Information Security Management System (K-ISMS) certification for its datacenter infrastructure in South Korea showcasing adherence to all compliance requirements.

According to Arizton Advisory & Research, South Korea’s data center market was valued at US$ 4.99 billion in 2024 and is expected to reach US4 9.90 billion by 2030, growing at a CAGR of 12.07 percent. Apart from being a hub of global business, manufacturing, and technology, South Korea is also a prime data center market due to its strong infrastructure, including a reliable network of submarine cables and high-speed internet connectivity. It has around 12 undersea cables that connect China, Japan, Singapore, Malaysia, the Philippines, Taiwan, India, Egypt, the UAE, the UK, Spain, the US, and others. Moreover, it has formidable ambitions when it come to AI.
Readers would recall that South Korea recently named its first ever AI Secretary. It has also proposed an investment of KRW 100 trillion (US$ 735 billion) into developing a sovereign AI trained on Korean cultural and historical data. But perhaps the most exciting upcoming AI project is the proposed 2GW AI data center being built by the SK Group in partnership with Amazon Web Services (AWS) in Ulsan Mipo National Industrial Complex. This will be one of the biggest data centers in South Korea.
Moreover, last December, South Korea passed the Artificial Intelligence and Establishment of Trust (AI Basic Act), which is set to take effect in January 2026. This Act is a comprehensive framework for AI regulation, and assigns responsibilities to AI developers (who create AI systems) and AI operators (who integrate AI into products or services). The act also places obligations on the government.

 

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