Alibaba Expands Cloud Presence in South Korea, Eyes AI Growth

• Alibaba strengthens cloud footprint in South Korea with AI-focused data center.
• South Korea's cloud market to reach USD 19.89 billion by 2030.
• Major government investments in AI and cloud infrastructure drive growth.

Alibaba’s strategic expansion in Asia continues with the launch of its second data center in South Korea, reinforcing its methodical growth approach that began nearly a decade ago.

 Alibaba initially entered the South Korean market in 2016 through a partnership with SK C&C, establishing local operations before opening its first South Korean data center in 2022. This move aligns with Alibaba’s broader Asia-Pacific strategy, which began with its first overseas data center in Singapore in 2015, followed by Malaysia in 2017. By 2019, Alibaba Cloud had built a presence in 18 data center regions worldwide.

The opening of Alibaba’s AI-focused data center comes at a pivotal moment, aligning with South Korea’s national AI strategy and major government investments in artificial intelligence. South Korea’s cloud market is one of the fastest-growing in Asia, projected to expand from USD 6.83 billion in 2025 to USD 19.89 billion by 2030, with a compound annual growth rate (CAGR) of 23.82%. The surge is driven by government initiatives like the K-Cloud Project, increasing cloud adoption, and digital transformation across key sectors.

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South Korea is also investing heavily in AI infrastructure, with the government allocating approximately USD 349 million to AI projects in 2025, including support for AI factories, chip technologies, and autonomous vehicle development. The AI Framework Act, coming into effect in January 2026, further supports this growth by mandating public funding for AI centers and training data accessibility.

Alibaba is strategically positioning itself to capitalize on this growing demand, particularly in the public cloud segment.