Alibaba Cloud to open second data centre in South Korea by 2025

Alibaba Cloud has announced plans to open its second data centre in South Korea by the end of June 2025, aimed at meeting increasing demand from local businesses for cloud computing and artificial intelligence services.

The initiative follows the launch of Alibaba Cloud's first South Korean data centre in 2022, illustrating the company's ongoing commitment to expanding cloud and AI infrastructure in the country. The new facility will enable Alibaba Cloud to offer a broader selection of cloud-native, big data, and database products, with a particular focus on supporting customers' AI applications. The company states that this development will provide significant improvements in network resilience, performance, and disaster recovery capabilities for its core cloud products.

The establishment forms part of Alibaba Group's previously announced RMB380 billion (USD $53 billion) investment strategy targeting AI and cloud infrastructure worldwide. So far in 2025, the company has opened its second data centre in Thailand and its first in Mexico.

Growing demand

The rapid adoption of AI technologies and ongoing digital transformation initiatives among South Korean enterprises have created a surge in demand for scalable and resilient infrastructure. The expansion is positioned as a response to this trend, with Alibaba Cloud aiming to deliver environments capable of supporting generative AI services and other digitally driven applications.

"In line with the rapid advancement of AI-based technologies and increasing digital demand across industries, Alibaba Cloud has been continuously expanding its infrastructure in South Korea," said Yoon Yong-joon, Country Manager of South Korea, Alibaba Cloud Intelligence. "Through the launch of this second data center, Alibaba Cloud will provide customers with more resilient and adaptable cloud environments, ultimately fostering AI innovation across various sectors and expanding the digital ecosystem."

Since entering the South Korean market in 2016, Alibaba Cloud has provided a range of scalable, secure, and cost-effective services. The company has played a role in supporting local businesses with digital transformation and helping some expand their footprint beyond South Korea. Its clients include both established enterprises and technology-focused startups.

Industry partnerships

Several South Korean companies have adopted Alibaba Cloud technologies to drive their own digital initiatives. Univa, a South Korea-based AI solutions provider, recently launched its 'Agent AI' service using Alibaba Cloud's generative AI capabilities and cloud infrastructure. Univa selected Alibaba Cloud's flagship language model, Qwen, due to its proven performance with Korean language processing.

Nam MyungJin, CEO of Univa, said, "Our collaboration with Alibaba Cloud has been pivotal in turning our vision into reality. Its cutting-edge cloud and AI technology has not only reduced costs by over 30%, but also enhanced Korean language processing accuracy from 45% to 95%."

Snow, a subsidiary of Naver, uses Alibaba Cloud's AI model Wan for its app's image stylisation function delivered in the Chinese market, allowing users to apply a variety of preset and custom style templates for personalised portraits.

Lala Station, a livestreaming company from South Korea, has grown its business in Southeast Asia through a partnership with Alibaba Cloud that began in 2022. Leveraging Alibaba Cloud's suite of cloud technologies and eCommerce livestreaming solutions, Lala Station launched a global platform which aims to enable business expansion and consumer engagement across diverse international markets.

Lee Cheol-ho, CEO of Lala Station, commented, "Thanks to Alibaba Cloud's strong global infrastructure, our platform provides not only a rich and seamless online shopping experience for Korean consumers, but also for customers in Southeast Asia. With Alibaba Cloud's support, we have been able to scale our operations and enhance engagement with our audience across diverse markets."

Local partnerships and compliance

Alibaba Cloud continues to pursue partnership strategies in South Korea, collaborating with companies such as Megazone Soft, ETECH SYSTEM, and ITCENCLOIT to deliver sector-specific consulting and technology services. MegazoneSoft, a provider of AI and cloud solutions in the Asia Pacific, is working with Alibaba Cloud to develop hybrid and multi-cloud solutions required by regional businesses.

Mintaek Suh, EVP of MegazoneSoft, stated, "MegazoneSoft brings unmatched cloud and AI expertise and a deep understanding of complex digital transformations. Our collaboration with Alibaba Cloud enables us to help customers who are increasingly asking for scalable hybrid and multi-cloud solutions that are tailored to the evolving needs of businesses in this region."

Alibaba Cloud's data centre operations in South Korea received the Korea Information Security Management System (K-ISMS) certification in December 2023. The certification, widely recognised in the country, attests to compliance with local information security regulations and is intended to provide enterprise clients with enhanced service protection.