Alibaba Cloud Expands Global Reach With First Mexico Data Center

Hangzhou-based Alibaba Group Holding’s cloud computing and AI arm has launched its first data center in Mexico, marking a significant step in the company’s global expansion. The move underscores Alibaba Cloud’s commitment to strengthening digital infrastructure in key overseas markets.

With this expansion, the company seeks to strengthen its presence in Latin America and offer advanced cloud storage, artificial intelligence and cybersecurity solutions for all size-companies. “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,” said Selina Yuan, President of International Business, Alibaba Cloud.

The data centre is located in Queretaro, and the announcement was made by Marco del Prete Tercero, Minister of Sustainable Development, Queretaro. Chen Yusen, General Manager of the Latin America Region, Alibaba Cloud Intelligence International, explained that the creation of this center responds to the growing demand for cloud scalability from the Alibaba Group. 

Representatives from Alibaba Cloud say the company now operates in 87 availability zones across 29 regions worldwide, prompting its global cloud services business. The China-based company aims to bring advanced cloud technology to local enterprises while fostering innovation and collaboration across Latin America.

Cloud computing services help businesses to buy, sell, lease, or distribute software and digital resources on demand over the internet. These resources are managed within data centers equipped with multiple power sources and high-bandwidth internet connections. Such facilities provide secure and temperature-controlled environments for large-capacity servers and data-storage systems.

Today, there is an increasing number of enterprises that rely on data centers to support AI projects and manage computing infrastructure. Alibaba Cloud’s expansion in Mexico aligns with its strategy to extend its global footprint and serve a broader range of international clients. This launch comes just six days after Alibaba announced the opening of its second data center in Thailand.

Alibaba Cloud, a subsidiary of Alibaba Group, is one of the world’s leading providers of cloud computing and AI services. It offers a wide range of cloud solutions, including data storage, machine learning, and cybersecurity, catering to enterprises across various industries. In 2022, Alibaba Cloud established a customer service center in Mexico City and in the past two years, it has collaborated with various local tech firms offering customized consulting services and industry-specific solutions.

As part of its evolving global strategy, Alibaba Cloud shut down its data centers in Australia and India last year while increasing investments in Southeast Asia, South Korea, and Mexico. According to Yuan, Mexican businesses can leverage Alibaba Cloud’s extensive global network to expand into international markets, particularly in Asia. The recently launched Mexico data center is expected to enhance digital transformation in the region, offering businesses improved access to secure and scalable cloud services.

Despite being the leading cloud services provider in mainland China, Alibaba Cloud continues to face stiff competition from US giants such as Amazon Web Services, Microsoft Azure, and Google Cloud. Cloud services remain a crucial segment of Alibaba’s operations, generating ￥29.6 billion (US$4.1 billion) in revenue for the September quarter, representing a 7% increase year from the year before. 

Queretaro: Latin America’s New Technology Epicenter

With the arrival of Alibaba Cloud, Queretaro is solidifying its status as a leading technology hub in Latin America. Global giants like Amazon Web Services (AWS) and Microsoft have already made substantial investments in the region, further boosting its digital infrastructure.

AWS kicked off operations in Queretaro in January with a US$5 billion investment, while Microsoft has committed US$1.3 billion to cloud infrastructure and tech training across Mexico. In addition, KIO Networks announced a US$400 million expansion of its data center in 2023. Alibaba’s recently launched Mexico data center is set to accelerate digital transformation, providing businesses with more secure, scalable, and efficient cloud services.