Alibaba Cloud opens its first data centre in Mexico
Alibaba Cloud has launched its first data centre in Mexico, as part of its ongoing effort to extend its digital infrastructure and cloud computing services into new global markets.
The facility is the company’s latest step toward expanding its presence in Latin America, where demand for cloud solutions is rising.
With this launch, Alibaba Cloud currently has 87 availability zones spread across 29 regions around the world. The Mexico facility is designed to give cloud computing resources to local businesses. It will also serve as a platform for building partnerships with regional technology companies, developers, and other enterprises.
Selina Yuan, president of Alibaba Cloud’s international business, said: “We are not only bringing world-class cloud technology to support local businesses, but also building an inclusive and thriving ecosystem in Mexico together with our local partners, developers and customers to foster innovation, collaboration and sustainable growth across Latin America.”
Meeting growing demand for cloud services
Cloud computing allows businesses to access computing power, data storage, and software over the internet instead of relying on on-site infrastructure. This transition has driven more companies to use cloud solutions, especially as they develop AI models and data-intensive applications.
Data centres are critical to cloud services, serving as secure facilities outfitted with large-capacity servers, data storage systems, and high-speed internet connections. They enable businesses to efficiently scale their digital operations while also providing the computing infrastructure needed for AI-driven innovations.
Alibaba Cloud’s new data centre in Mexico is expected to support companies looking to modernise their IT infrastructure and adopt cloud-based solutions. Local businesses can also tap into Alibaba Cloud’s global network, which provides opportunities to expand into markets across Asia and other regions.
Expanding international footprint
The Mexico facility is part of Alibaba Cloud’s broader plan to grow its operations outside China. It comes just days after the company announced the launch of a second data centre in Thailand, reflecting a push to increase its footprint in key international markets.
While Alibaba Cloud is the largest cloud provider in mainland China, it faces stiff competition globally from US firms such as Amazon Web Services, Microsoft Azure, and Google Cloud. These companies dominate the international cloud market, prompting Alibaba to focus on building a stronger presence in developing regions.
Alibaba Cloud first established a presence in Mexico in 2022 with the opening of a customer service center in Mexico City. Since then, it has collaborated with local technology firms to offer consulting services and cloud-based solutions tailored to different industries.
A shift in strategy
The company’s development in Mexico corresponds to a strategic shift in its global operations. Last year, Alibaba Cloud ceased operations of data centres in Australia and India, while investing more in Southeast Asia, South Korea, and Latin America. This approach reflects the company’s focus on regions where demand for cloud services is growing and competition is less entrenched.
Alibaba Cloud’s revenue from cloud computing reached 29.6 billion yuan (US$4.1 billion) in the September quarter, a 7% increase from the same period a year earlier. The company is scheduled to release its financial results for the December quarter on Thursday.
