HANGZHOU, China — Chinese technology giant Alibaba has announced plans to significantly expand its international data centre network, targeting markets across Europe, the Middle East and Asia as demand for artificial intelligence and cloud computing continues to grow.
The company said on Wednesday that it would establish its first cloud regions in Turkey, Finland and the Netherlands while expanding existing data centre operations in Malaysia, Germany, the United Arab Emirates, France and Hong Kong over the next 12 months.
The expansion comes as Alibaba increases investment in artificial intelligence and cloud infrastructure amid intensifying technological competition between China and the United States.
Alibaba Targets Global Cloud Expansion
Alibaba said the new cloud regions would strengthen its ability to provide computing and data services to customers outside China.
The company is targeting more than 20 gigawatts of global data centre capacity by 2032, according to CEO Eddie Wu, who announced the long-term ambition at Alibaba’s annual flagship conference in Hangzhou.
The expansion reflects growing demand for computing power as companies increasingly adopt AI applications that require large amounts of processing capacity and data infrastructure.
Alibaba is one of China’s leading AI companies, with its Qwen family of models gaining significant international attention.
Alibaba Plans Bigger AI Model
Wu also revealed that Alibaba is developing an AI model with between five trillion and 10 trillion parameters.
If completed as described, the model would be several times larger than Alibaba’s current systems and represents the company’s push to compete in increasingly sophisticated AI development.
The announcement comes as Chinese technology companies invest heavily in AI infrastructure, models and specialised processors in response to restrictions on access to some advanced US-made chips.
Alibaba Unveils New AI Chip
Alibaba also unveiled a new artificial intelligence processor, the Zhenwu V900, during the Hangzhou conference.
The company said the chip would deliver three times the performance of its predecessor, the Zhenwu M890.
Wu described the V900 as the most powerful AI chip currently developed in China.
Alibaba’s claims about chip performance have not been independently verified in the announcement and are part of the company’s broader effort to develop domestic alternatives to leading foreign AI processors.
China Pushes AI Chip Self-Reliance
The new chip comes as Beijing encourages Chinese technology companies to reduce their dependence on foreign semiconductor technology.
The push has gained importance as Washington has imposed export controls restricting China’s access to advanced chips used for artificial intelligence and other frontier technologies.
US restrictions have targeted high-end processors from companies including Nvidia, limiting the ability of Chinese firms to obtain some of the most advanced computing hardware available on the global market.
Chinese companies have consequently accelerated efforts to develop and deploy domestic alternatives.
US-China Tech Rivalry Intensifies
Alibaba’s expansion comes against the backdrop of a broader technology rivalry between Beijing and Washington.
The two countries are competing across strategic industries including semiconductors, artificial intelligence and robotics.
The latest Alibaba announcements also came ahead of an anticipated meeting between Chinese President Xi Jinping and US President Donald Trump, where trade and technology tensions are expected to feature among the issues under discussion.
Restrictions on advanced semiconductors have become a major point of friction between the world’s two largest economies.
Alibaba Bets on AI Infrastructure
Alibaba’s overseas data centre expansion, larger AI models and domestic chip development point to a broader strategy of building an integrated technology ecosystem.
The company is seeking to expand its cloud business internationally while increasing the computing capacity available for its AI operations.
Its target of more than 20GW of global data centre capacity by 2032 would require substantial investment in power, computing infrastructure and data centre facilities.
The developments underline the growing importance of data centres and specialised AI chips as technology companies compete to build increasingly powerful artificial intelligence systems.
