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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.

Korea’s SK Group and Amazon to Invest $5 Billion in Nation’s Largest AI Data Centre

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South Korea’s SK Group announced a $5.11 billion investment plan, including $4 billion from Amazon Web Services (AWS), to build the country’s largest data centre in Ulsan, the Science Ministry confirmed Friday. Construction will begin in September, with full operations expected by 2029, featuring a capacity of 100 megawatts.

SK Group Chairman Chey Tae-won expressed ambitions to expand the facility to one gigawatt eventually, aiming to position it as a global hub to meet domestic AI demands. President Lee Jae Myung, present at the announcement alongside tech industry leaders, emphasized AI’s critical role in South Korea’s growth and praised the project for spreading high-tech industry development beyond the metropolitan areas into provincial regions.

Following the announcement, South Korean AI-related stocks surged, with SK Hynix rising over 3%, Kakao jumping 11%, and LG CNS gaining 9%, helping the KOSPI index surpass 3,000 points for the first time in over three years.

The investment confirms earlier media reports this month about SK Group and AWS’s plans to build a major data centre in South Korea.

B. Grimm Power and Digital Edge to Invest $1 Billion in Thailand Data Centre

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Thai energy firm B. Grimm Power Pcl and Singapore-based digital infrastructure company Digital Edge announced a joint investment of $1 billion to build a 100-megawatt data centre in Thailand. This project aims to meet rising demand for digital infrastructure powered by clean energy, driven in part by surging interest in artificial intelligence technologies across Southeast Asia.

Thailand, the region’s second-largest economy, has become a hotspot for tech giants investing heavily in data centres. Notably, TikTok’s parent company Bytedance plans to invest $8.8 billion over five years, while Google is also preparing to launch a $1 billion data centre facility in the country. Earlier this year, Thailand’s investment board approved $3 billion in investments specifically targeted at data centres and energy projects.

Microsoft last year announced plans for its first regional data centre in Thailand, further solidifying the country’s status as a growing digital hub.

B. Grimm Power and Digital Edge said construction will be “fast-tracked” to have the data centre operational by the fourth quarter of 2026, catering to global tech firms looking to expand AI infrastructure in Southeast Asia. Harald Link, Group President of B. Grimm Power, highlighted the synergy between renewable energy and advanced data centre technology, stating the project will support Thailand’s transformation into a regional AI and cloud innovation centre.