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Alibaba Cloud opens second data centre in Dubai to expand AI and cloud services

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Alibaba Cloud, the digital technology and artificial intelligence arm of Chinese e-commerce giant Alibaba Group, has launched its second data centre in Dubai, nine years after opening its first in the region. The expansion reflects Alibaba’s ambition to strengthen its global cloud computing footprint and support rising demand across the Middle East.

The launch is part of Alibaba’s broader commitment to invest 380 billion yuan ($53 billion) over three years in cloud infrastructure and AI capabilities. Although the company did not disclose specific financial details for the Dubai facility, it said the move aims to empower both public and private sectors in adopting artificial intelligence technologies more rapidly.

“The Middle East’s advantageous position in fast-tracking AI adoption and its collaborative ecosystem are crucial enablers for companies to thrive,” said Eric Wan, vice president of Alibaba Cloud International and regional general manager of Alibaba Cloud Intelligence.

The United Arab Emirates (UAE) has emerged as a regional leader in AI development, investing billions to diversify its economy beyond oil. In May, the UAE announced plans to build the largest AI campus outside the United States through partnerships with Nvidia, OpenAI, and other global tech firms.

At the GITEX Global technology exhibition in Dubai, Alibaba Cloud also revealed new partnerships with companies such as Abu Dhabi-backed Wio Bank, aiming to use its local data infrastructure to accelerate AI and fintech deployment across the region.

Cisco unveils AI-focused chip to link massive data centers

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Cisco Systems has introduced a new networking chip, the P200, designed to connect large-scale AI data centers across vast distances. The technology, which will power a new generation of high-capacity routers, has already attracted major clients including Microsoft Azure and Alibaba Cloud, the company announced Wednesday.

The P200 aims to solve a growing challenge in artificial intelligence — connecting geographically distant data centers so they can operate as one massive computing system. “AI training jobs are now so large, they require multiple data centers working together — even a thousand miles apart,” said Martin Lund, Cisco’s executive vice president of common hardware.

The chip consolidates what previously required 92 separate components into one, allowing routers to use 65% less power. Cisco said the innovation helps AI firms manage rising energy demands as data centers spread to regions such as Texas and Louisiana, where electricity is more abundant.

The P200 will compete directly with Broadcom’s networking chips, offering faster data synchronization and more efficient buffering technology, a crucial feature for ensuring AI workloads remain stable across distributed systems.

Industry leaders including Microsoft’s Dave Maltz praised the move, saying the chip provides “faster networks with more buffering to absorb bursts of data,” critical for scaling AI operations. Cisco did not disclose investment costs or revenue expectations but said the chip represents a major leap in AI infrastructure efficiency.