The Chinese multinational has officially launched its first cloud region in Brazil, marking a significant step in its strategy to connect Latin American businesses to its global network.
Alibaba cloud infrastructure expansion reaches Brazil as AI focus intensifies
Article by:
PUBLISHED:
Chinese technology multinational Alibaba Cloud has launched its first cloud region in Brazil, establishing two new availability zones – the industry term for a data centre or group of data centres – to serve one of the world’s most dynamic digital economies. This move represents the company’s second major foray into Latin America, following the introduction of its cloud services in Mexico in February 2025.
The new South American facilities are part of an ambitious global strategy designed to enhance local accessibility and support the growing demand for enterprise-grade artificial intelligence services.
Accelerating the Alibaba Cloud infrastructure expansion
With the recent deployment in Brazil, Alibaba Cloud now operates 106 availability zones across 31 regions worldwide. This rapid scaling is underpinned by a massive investment projection of US$53 billion dedicated to cloud and artificial intelligence systems globally. By the end of June, the company confirmed that half of this substantial capital had already been deployed, underscoring the urgency of its global development plans.
To finance this aggressive growth, Alibaba has announced plans to issue HK$80 billion (approximately US$10.2 billion) in new shares. The proceeds are earmarked primarily for expanding capabilities within the AI sector. The company reported quarterly revenues of US$40 billion, a 9 percent increase compared to the previous year, providing a robust financial foundation for its ongoing projects.
In Brazil, capacity will be partially hosted within data centres operated by Ascenty, the largest data centre and connectivity service provider in Latin America, located in the interior of São Paulo state. The focus extends beyond basic storage, with the company offering low latency and advanced data governance alongside enterprise-grade agentic AI services.
[See more: Hong Kong stocks fall after Alibaba announces an equity placement]
Partnerships have been central to the firm’s entry strategy. Technology solutions provider Insi has signed on to assist with the digital transformation of large and mid-sized enterprises. Additionally, 4Linux, a specialist in open-source software and corporate IT, is finalising a collaboration to integrate Alibaba’s Qwen models with cloud services, offering professional training to local clients.
Allen Guo, general manager for the Latin America region and vice president of international business at Alibaba Cloud Intelligence, noted that the region is a core market for their strategy. “We are supporting Brazilian companies as they build their cloud and AI capabilities and connecting them to Asia and our entire global network,” Guo said.
