
Alibaba Cloud plans first data centers in Finland, Netherlands, Turkey
The move
Alibaba Cloud said on Sept. 23 it will open its first cloud regions in Finland, the Netherlands and Turkey within 12 months, while adding data center capacity in Germany, France, the UAE, Malaysia and Hong Kong. CEO Eddie Wu said Alibaba Cloud's target is to grow its global data center capacity past 20 gigawatts by 2032. The company also unveiled its Zhenwu V900 AI chip, which it says is about twice as powerful as Nvidia's China-specific H20 chip.
Why it matters
Alibaba is racing to build AI infrastructure outside China as U.S. export restrictions limit its access to Nvidia's most advanced chips, making its own Zhenwu V900 chip and new overseas regions part of the same strategy.
The bear case
Running cloud regions and chip design at the same time spreads Alibaba's capital across more fronts, and new regions in Europe and Turkey mean navigating different data and AI regulations in each market.
What to watch
Whether the Zhenwu V900 chip reaches outside customers, and progress toward Alibaba's 2032 20-gigawatt target.
