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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

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Alibaba Group Holdings vice-president Selina Yuan, who serves as president at Alibaba Cloud Intelligence International, speaks at the launch of new joint venture Saudi Cloud Computing Co in Riyadh, Saudi Arabia, on June 5, 2022. Photo: Xinhua
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Alibaba Group Holding’s cloud computing unit will open two new data centres this week in Saudi Arabia, more than a year after the Chinese e-commerce giant committed to invest up to US$500 million over a five-year period in the largest country in Western Asia.
Hangzhou-based Alibaba’s joint venture in the country, Saudi Cloud Computing Co, announced the infrastructure expansion at a launch ceremony last Sunday in Riyadh, the country’s capital, where the Chinese firm was represented by Alibaba Cloud Intelligence International president Selina Yuan. Alibaba owns the South China Morning Post.

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.

Alibaba Cloud’s mobile app icon is seen displayed on a smartphone on April 1, 2020. Photo: Shutterstock
Alibaba Cloud’s mobile app icon is seen displayed on a smartphone on April 1, 2020. Photo: Shutterstock

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.

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