Alibaba Cloud said the new facility is part of its previously announced $53 billion global investment
In sum – what to know:
Double capacity – Alibaba Cloud opened its second regional data center in Dubai to handle rising AI and cloud workloads in the Middle East.
$53B global investment – The expansion aligns with Alibaba’s larger multiyear commitment to AI and infrastructure upgrades worldwide.
Regional ecosystem partnerships – Firms in finance, gaming, and healthcare are adopting Alibaba Cloud’s infrastructure to scale AI-driven services
Chinese company Alibaba Cloud has opened its second data center in Dubai, United Arab Emirates (UAE) to meet rising regional demand for cloud computing and AI infrastructure, the company said in a release.
The new facility is part of Alibaba’s previously announced CNY 380 billion ($53 billion) global investment in AI and cloud infrastructure over the next three years. With this expansion, Alibaba Cloud said it will strengthen local capacity for elastic computing, storage, networking, and data management, while improving resilience and disaster recovery capabilities across its regional network.
Eric Wan, vice president of Alibaba Cloud International and general manager for the Middle East, Turkey, and Central Asia, said: “The Middle East’s advantageous position in fast-tracking AI adoption and its collaborative ecosystem are crucial enablers for private and public sector companies to thrive. We look forward to enabling more local and global businesses to succeed with our robust infrastructure and advanced AI solutions in the region.”
The new site supports Alibaba Cloud’s partnerships with organizations across key sectors including finance, healthcare, gaming, and media, the firm added.
Alibaba Cloud first entered the Middle East in 2016 with its initial Dubai data center. The company said the second site will strengthen network performance and capacity to handle the growing workloads driven by AI and digital transformation initiatives across the region.
Alibaba Cloud has recently outlined new international expansion plans, announcing its first data centers in Brazil, France, and the Netherlands, with further facilities planned in Mexico, Japan, South Korea, Malaysia, and Dubai over the coming year.
The company also announced plans to open new regional service centers in Indonesia and Germany to strengthen localized support.
The announcements were made at Alibaba’s Apsara Conference 2025. The firm currently operates 91 availability zones across 29 regions. The new buildout is intended to expand global infrastructure coverage and support growing demand for cloud and AI services, the firm said.
The company has developed a new artificial intelligence chip designed to handle a wider range of inference tasks, according to a previous Wall Street Journal report.
The chip, currently undergoing testing, is being manufactured in China, a shift from an earlier generation of Alibaba’s AI processors that were fabricated by Taiwan Semiconductor Manufacturing Company (TSMC), according to the report.
The development comes amid efforts by Chinese technology firms to reduce reliance on foreign AI chip suppliers.