Alibaba Cloud plans to open its second data centre in South Korea by June 2025, following its first facility launched in 2022. The move aims to meet growing local demand for AI and cloud computing services. The new centre will expand access to Alibaba’s cloud-native, big data, and database products while improving network resilience and disaster recovery. This forms part of Alibaba Group’s $53 billion global investment in AI infrastructure. South Korea joins Thailand and Mexico as key markets in 2025, reinforcing Alibaba Cloud’s focus on building robust ecosystems for generative AI and enterprise digital transformation.
South Korean Market Demand Fuels Expansion
With AI adoption surging across industries, South Korea’s enterprises require scalable and secure infrastructure. Alibaba Cloud’s second data centre answers this call, designed to support advanced AI applications and high-performance digital services. According to Country Manager Yoon Yong-joon, the expansion will offer “more resilient and adaptable cloud environments,” boosting AI innovation and enabling broader digital growth. Since entering the South Korean market in 2016, Alibaba Cloud has supported a range of startups and established companies in their digital journeys.
This includes Univa, which launched its ‘Agent AI’ solution using Alibaba’s flagship model Qwen, improving Korean language processing accuracy from 45% to 95% and reducing costs by over 30%. Naver’s subsidiary Snow also uses Alibaba Cloud’s AI model Wan for image stylisation in China, while Lala Station, a livestreaming platform, expanded into Southeast Asia with Alibaba Cloud’s e-commerce and livestreaming technologies. These cases demonstrate Alibaba Cloud’s ability to empower innovation while scaling businesses internationally. The new data centre enhances Alibaba’s offerings for AI workloads, data analytics, and disaster recovery, reinforcing its position as a trusted cloud partner in South Korea’s highly competitive tech ecosystem.
Partnerships and Localised Strategy Drive Adoption
Alibaba Cloud is strengthening its position through strategic local partnerships with South Korean firms. Companies like MegazoneSoft, ETECH SYSTEM, and ITCENCLOIT are collaborating with Alibaba to deliver hybrid and multi-cloud solutions tailored to enterprise demands. These joint efforts aim to accelerate digital transformation across sectors, including fintech, healthcare, and manufacturing. MegazoneSoft EVP Mintaek Suh emphasized that combining Alibaba Cloud’s infrastructure with their regional expertise addresses “complex digital transformations” and the increasing need for customised, scalable cloud strategies. This partnership-driven model is central to Alibaba’s go-to-market approach in South Korea.
Security and compliance are also critical. In 2023, Alibaba Cloud earned the Korea Information Security Management System (K-ISMS) certification, ensuring local regulatory compliance and boosting customer confidence. With this certification, enterprise clients are assured of service protection aligned with South Korea’s strict data governance standards. Alibaba’s investment strategy isn’t just about infrastructure; it’s about embedding into local ecosystems. By offering cutting-edge services while working hand-in-hand with Korean businesses and adhering to local compliance, Alibaba Cloud is becoming more than a foreign vendor; it’s becoming a vital part of South Korea’s digital economy. As AI adoption expands, such localization could determine long-term dominance in the region’s cloud market.
Strengthening Global Cloud Presence
Alibaba Cloud’s second data centre in South Korea adds to its expanding global footprint, reflecting its strategy to dominate AI and cloud services across key regions. Following launches in Thailand and Mexico, this facility highlights Alibaba’s $53 billion commitment to AI infrastructure. For South Korean enterprises, the new centre offers tailored, scalable solutions aligned with local needs and regulatory standards. With strong partnerships and certified operations, Alibaba Cloud is positioned to fuel innovation, support enterprise expansion, and elevate South Korea’s AI capabilities. As demand for generative AI surges, Alibaba’s presence ensures businesses can build, scale, and compete on a global stage.
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