Alibaba Cloud is on an expansion mode. But it is simultaneously shutting down its centers in India and Australia. The decision is basically to reallocate resources to more promising markets. Like Singapore and Mexico.
The affected data centers are located in Sydney and Mumbai. These two were established in 2016 and 2018 respectively. The company is now planning to redirect the investments towards Southeast Asia and Mexico. It is learned the regions have been identified as having higher growth potential. The move also aligns with Alibaba Cloud’s broader strategy and it is to attract more customers in major markets.
Alibaba Cloud is a leading cloud infrastructure provider in mainland China. However, it trails behind major US competitors such as Amazon Web Services, Microsoft Azure and Google Cloud. Tech research firm Canalys reveals that the US companies are currently dominating the global cloud infrastructure services market.
Cloud computing technology enables distribution of software and digital resources over the internet as on-demand services. It mainly relies on data centers. Strategically relocating the centers means optimizing the infrastructure and serve better the target markets for Alibaba Cloud.
Alibaba Cloud was a major sponsor of Olympic Games since 2017. It significantly enhanced efficiency of organizing the events by using the technology.
Alibaba Cloud was founded in 2009 and is serving about 80 percent of mainland China’s technology firms. It also supports half of the AI large language model (LLM) companies in the country. The latest decision of the company to close Australia and India data centres highlights its strategy to reallocate resources to such regions which are having higher growth potential. It will be concentrating its efforts on Southeast Asia and Mexico. It aims to strengthen its market presence and infrastructure capabilities in the emerging markets.
