Since entering the South Korean market in 2016, Alibaba Cloud has actively targeted local enterprises by leveraging its proprietary infrastructure and large language model (LLM), “Tongyi.” (Image source: Alibaba Cloud)
SEOUL, June 19 (Korea Bizwire) — Alibaba Cloud, the cloud computing arm of China’s Alibaba Group, announced Thursday that it will launch its second data center in South Korea this month, strengthening its foothold in a rapidly evolving cloud and AI market.
At a press briefing held in Seoul’s Gangnam district, the company outlined its expanded vision for South Korea’s digital infrastructure, citing soaring demand driven by the adoption of generative AI technologies.
Having first entered the Korean market in 2016, Alibaba Cloud opened its first domestic data center in March 2022. With the new Seoul-based facility, the company aims to offer a broader range of services optimized for AI applications, including cloud-native solutions, big data, and database management tools.
Yoon Yong-joon, country manager for Alibaba Cloud Intelligence Korea, said the expansion reflects the company’s commitment to supporting South Korea’s digital transformation. “As AI technologies evolve and demand surges across industries, we are investing in a more flexible and resilient cloud infrastructure to drive AI innovation and enhance the nation’s digital ecosystem,” he said.
The launch of the new data center comes as Chinese cloud providers ramp up investments abroad, including in South Korea, where competition in the data infrastructure market is intensifying. Alibaba Cloud has established partnerships with Korean firms such as MegazoneSoft, eTech System, and ITCen CloIT to deliver tailored consulting and industry-specific cloud solutions.
China has also been accelerating its AI ambitions. Earlier this year, the country saw a surge in interest around DeepSeek, a prominent generative AI service, and Alibaba continues to enhance its proprietary AI model Qwen, signaling a broader push in tech supremacy.
Alibaba’s expansion in Korea coincides with a flurry of activity by global tech giants in the region. SK Group recently partnered with Amazon Web Services (AWS) to build a 100MW AI-focused data center in Ulsan’s Mipo National Industrial Complex. Meanwhile, Google Cloud is leveraging its Cloud WAN (Wide Area Network) to support AI transitions for LG Group affiliates and customers of LG CNS.
The move also plays into the broader economic strategy of President Lee Jae-myung’s administration, which has prioritized digital innovation and global tech collaboration amid rising geopolitical and technological competition—particularly as the re-elected Trump administration in the U.S. recalibrates its approach to Asia-Pacific data and AI policy.
Kevin Lee (kevinlee@koreabizwire.com)
