
Alibaba’s cloud services business launches two new data centres in Saudi Arabia to step up its overseas expansion
- Alibaba Cloud has launched a new joint venture in Saudi Arabia, with local partners that include Saudi Telecom Co and eWTP Arabia Capital
- The venture’s infrastructure expansion forms part of Alibaba’s commitment to invest in Saudi Arabia and contribute to the country’s Vision 2030 strategy
The Chinese firm’s partners in the venture include Saudi Telecom Co (STC), eWTP Arabia Capital, the Saudi Company for Artificial Intelligence and the Saudi Information Technology Co, according to a release published by the Saudi Press Agency.
STC and venture capital firm eWTP Arabia Capital first announced their partnership with Alibaba Cloud on December 28, 2020, when the Chinese firm also made its commitment to contribute to Saudi Arabia’s Vision 2030 – the country’s strategic framework to diversify its economy and reduce its dependence on oil.

Cloud computing services enable companies to buy, sell, lease or distribute a range of software and other digital resources as an on-demand service over the internet, just like electricity from a power grid. These resources are managed inside data centres.
In Saudi Arabia, the Alibaba joint venture’s data centres will help provide a wide range of public cloud services to help step up digitalisation initiatives by small and medium-sized enterprises and major companies across a range of industries.
That expansion reflects the gains being made by Alibaba Cloud in engaging users in industries beyond the internet sector.
“Their collaboration in Saudi Arabia may serve as a breakthrough for the company in its future [revenue] performance,” Livia Li, a senior analyst at Frost & Sullivan, said in May after Alibaba’s March quarter earnings report. She indicated that overseas markets are expected to contribute more to Alibaba Cloud’s revenue.
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In its home market, Alibaba Cloud remains the biggest provider of cloud infrastructure services, according to a report in March by tech research firm Canalys.
