Alibaba Cloud will launch its second data centre in South Korea by the end of June 2025, as it expands support for the country’s fast-growing demand for cloud computing and artificial intelligence (AI) services. The move follows the opening of its first local data centre in 2022, and underlines its long-term commitment to South Korea’s digital economy.
The latest investment reflects Alibaba Cloud’s goal of strengthening its infrastructure to support the adoption of generative AI technologies and help local businesses accelerate digital transformation. The new facility will broaden its portfolio of cloud-native, big data and database services in South Korea, while enhancing cloud resilience, network performance, and disaster recovery capabilities.
“In line with the rapid advancement of AI-based technologies and increasing digital demand across industries, Alibaba Cloud has been continuously expanding its infrastructure in South Korea,” said Yoon Yong-joon, Country Manager of South Korea at Alibaba Cloud Intelligence. “Through the launch of this second data centre, Alibaba Cloud will provide customers with more resilient and adaptable cloud environments, ultimately fostering AI innovation across various sectors and expanding the digital ecosystem.”
Expanding cloud capabilities and AI partnerships
Alibaba Cloud first entered the South Korean market in 2016, offering secure, scalable and cost-effective services to support digital growth across various industries. Over time, it has worked with multiple partners and customers to implement AI-driven solutions using its proprietary models and infrastructure.
One of these collaborations includes Univa, a local provider of AI solutions, which recently launched ‘Agent AI’ based on Alibaba Cloud’s generative AI model Qwen. The platform was selected for its strong Korean language processing capability. “Our collaboration with Alibaba Cloud has been pivotal in turning our vision into reality. Its cutting-edge cloud and AI technology has not only reduced costs by over 30%, but also enhanced Korean language processing accuracy from 45% to 95%,” said Nam MyungJin, CEO of Univa.
Similarly, Snow, a subsidiary of Naver, uses Alibaba Cloud’s video generation model Wan to enable stylised portrait creation on its app for users in China. The app supports custom templates and a wide range of preset styles, offering users more personalised image generation features.
Another example is Lala Station, a Korean livestreaming company that expanded to Southeast Asia in partnership with Alibaba Cloud. Using the provider’s e-commerce livestreaming technology and global infrastructure, Lala Station was able to scale operations and reach more consumers beyond its home market. “Thanks to Alibaba Cloud’s strong global infrastructure, our platform provides not only a rich and seamless online shopping experience for Korean consumers, but also for customers in Southeast Asia,” said CEO Lee Cheol-ho.
Deepening local partnerships and compliance efforts
In addition to customer partnerships, Alibaba Cloud is also working closely with local firms to enhance service delivery. Partners include Megazone Soft, ETECH SYSTEM and ITCENCLOIT, which are helping develop industry-specific solutions and consulting services for clients in South Korea.
MegazoneSoft, a cloud and AI services company in Asia Pacific, is collaborating with Alibaba Cloud to expand its presence in key markets. “MegazoneSoft brings unmatched cloud and AI expertise and a deep understanding of complex digital transformations,” said Mintaek Suh, Executive Vice President of MegazoneSoft. “Our collaboration with Alibaba Cloud enables us to help customers who are increasingly asking for scalable hybrid and multi-cloud solutions that are tailored to the evolving needs of businesses in this region.”
Alibaba Cloud’s first data centre in South Korea was launched in March 2022. In December 2023, it received the Korea Information Security Management System (K-ISMS) certification, South Korea’s most recognised information security standard. This certification ensures that Alibaba Cloud’s services meet local regulatory requirements, providing enterprise users with enhanced data protection and compliance assurance.
Supporting South Korea’s digital future
As demand for generative AI and data-driven solutions continues to rise, Alibaba Cloud’s investment in a second data centre marks a strategic step towards meeting the needs of Korean businesses and institutions. It reinforces the company’s broader vision of enabling innovation through cloud technologies while supporting regional digital ecosystems.
With growing interest from enterprises looking for high-performance, secure and localised infrastructure, Alibaba Cloud aims to play a leading role in South Korea’s ongoing digital transformation.
