Alibaba expands cloud business with a second data center in Dubai

Chinese e-commerce giant Alibaba‘s cloud business unit has launched its second data center in Dubai, it said on Tuesday, nine years after its first, as it expands its global cloud computing services to meet growing demand.

Alibaba Cloud, the digital technology and artificial intelligence division, said in a statement the launch was part of the technology major’s pledge to invest 380 billion yuan ($53 billion) over three years. No financial details were disclosed in Tuesday’s statement.

“The Middle East’s advantageous position in fast-tracking AI adoption and its collaborative ecosystem are crucial enablers for private and public sector companies to thrive,” said Eric Wan, vice president of Alibaba Cloud International and regional general manager at Alibaba Cloud Intelligence.

The United Arab Emirates, among the world’s top oil exporters, has been spending billions of dollars on an AI push, and under a deal signed in May, it is building the largest AI campus outside the United States in partnership with technology giants such as Nvidia and OpenAI.

The long-coveted agreement was a major win for the Gulf country, which has been trying to balance its relations with its longtime ally, the U.S., and its largest trading partner, China.

However, Reuters reported, citing sources, that the deal has not been finalized amid U.S. security concerns around Beijing’s access to advanced semiconductors via third parties such as the UAE, where major Chinese companies remain active.

Alibaba Cloud said in the statement on Tuesday that it had partnered with several companies from various sectors, including Abu Dhabi-backed digital lender Wio Bank, during tech and AI exhibition GITEX Global in Dubai to take advantage of its local infrastructure capabilities to accelerate AI deployment.

—Rachna Uppal and Federico Maccioni, Reuters