Alibaba to Open More Cloud Data Centers in Europe


Mar. 5 2018, Updated 9:02 a.m. ET

Alibaba planning more data centers in Europe

Alibaba (BABA) is planning to expand its cloud computing footprint in Europe with more data centers on the continent, the company’s chief of cloud computing operations in Europe, Yeming Wang, told CNBC recently.

Alibaba currently operates only one data center in Europe. The company is excited about growth prospects in Europe’s cloud computing market. More businesses on the continent are digitizing their workloads, so it wants to expand to take advantage of the opportunities.

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First Indian data center

Last year, Alibaba announced its first data center in India, marking another step in its escalating competition with Amazon (AMZN) and Microsoft (MSFT) for global cloud computing revenues. Amazon is spending $5.0 billion to build its business in India, and these efforts include opening up markets for its cloud computing services in the country.

Microsoft is one of the investors in India’s e-commerce provider Flipkart, with the investment viewed as part of its push to win more cloud customers in India. Flipkart is also backed by Amazon’s rival eBay (EBAY) and Alibaba’s competitor Tencent Holdings (TCEHY).

Alibaba cloud revenue rose 104%

While Alibaba’s initial push into Europe’s cloud computing market was focused on winning the budgets of Chinese businesses operating on the continent, the company is expanding its scope, and it now wants to sign up European businesses as well.

Alibaba’s cloud computing unit brought in revenue of $553 million in the quarter that ended in December 2017, which is the company’s fiscal 3Q18. Cloud was the company’s fastest-growing product group, with growth of 104% year-over-year.


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