Alibaba Cloud will launch its second data center in South Korea in June.

Gate News bot message, Alibaba Group Holding Limited will open its second data center in South Korea by the end of June, accelerating its multi-billion dollar bet on artificial intelligence and cloud computing.

An Alibaba spokesperson said the new factory was part of a 380 billion yuan ($52.9 billion) investment plan for artificial intelligence and cloud infrastructure announced earlier this year. The company said in a statement on Thursday that the expansion was to meet the growing demand for cloud and artificial intelligence services from South Korean businesses.

Alibaba Cloud entered the South Korean market in 2022, establishing a data center in Seoul. Its clients include artificial intelligence solution provider Univa and Naver subsidiary Snow, both of which have been utilizing Alibaba Cloud’s basic artificial intelligence models. Alibaba Cloud operates 87 availability zones across 29 regions globally, making it the largest cloud service provider in China.