- Alibaba Cloud launches first data centre in Mexico.
- Expansion of global network and presence in Latin America.
Alibaba Cloud has launched its first data centre in Mexico, strengthening its presence in Latin America as the company continues to expand its cloud infrastructure globally. The facility is intended to provide cloud computing services to local businesses and supports Alibaba Cloud’s efforts to widen its reach in international markets. With the addition of the Mexico site, Alibaba Cloud’s global infrastructure now provides 87 availability zones in 29 regions.
Supporting local businesses and partnerships
Alibaba Cloud first established a presence in Mexico in 2022 with the opening of a customer service centre in Mexico City. Since then, it has partnered with several local technology firms to offer consulting services and customised cloud-based solutions to businesses in sectors like finance, retail, and manufacturing.
Selina Yuan, president of international business at Alibaba Cloud, said the company wants to work with local partners, developers, and customers in Latin America. The data centre is expected to offer a range of cloud computing resources based on compute, storage, and networking.
Growing cloud adoption in Mexico
Demand for cloud computing services has increased in Mexico and other Latin American countries as businesses shift their operations online and use technologies like artificial intelligence. Cloud services allow companies to access computing power, storage, and software over the internet on a pay-as-you-go basis. This seen as a cost-effective and flexible alternative to maintaining on-premises systems.
Data centres play a key role in cloud computing by housing large-capacity servers and data storage systems in secure, temperature-controlled environments. They are equipped with backup power sources and high-speed internet connections to ensure the continuous operation of cloud services. Alibaba Cloud’s facility will support businesses adopting cloud-based platforms to improve their operations. Companies working on AI development, data analytics, and other digital initiatives are expected to benefit from the infrastructure.
Global expansion
The launch of the Mexico data centre is part of Alibaba Cloud’s broader strategy to expand its international presence. It comes just days after the company opened a second data centre in Thailand, signalling increased investment in markets outside China. While Alibaba Cloud remains the largest cloud provider in China, it competes globally with Amazon Web Services (AWS), Microsoft Azure, and the Google Cloud Platform (GCP), which hold a larger share of the international cloud market. Alibaba has focused expansion efforts on regions like the Middle East, Southeast Asia, South Korea, and Latin America. In 2023, it closed data centres in Australia and India as part of a shift in strategy to concentrate resources on markets with higher growth potential.
Increased competition in Mexico
Mexico has attracted significant attention from global cloud providers in recent years. AWS, Google, and Microsoft have launched cloud regions from the country in the last six months. Microsoft has announced plans to invest $1.3 billion to enhance its AI infrastructure in the country. Oracle entered the Mexican cloud market in 2022 with a data centre in Querétaro, followed by the launch of a second facility later that year in partnership with América Móvil’s Telmex.
Cloud revenue growth
Cloud computing services have become an important part of Alibaba’s overall business. In Q3 2024, the company reported 29.6 billion yuan (US$4.1 billion) in cloud revenue, a 7% increase compared to the previous year. Financial results for the December quarter are released today.
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