Alibaba Cloud Expands in France Amid European Data Sovereignty Drive

Alibaba Cloud has launched its first data centres in France, expanding its European footprint amidst increasing calls for data sovereignty across the continent. The cloud computing services unit of Alibaba Group Holding stated this expansion responds to increasing customer demand in the region.

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Feifei Li, Alibaba Cloud’s Chief Technology Officer and President of International Business, stated, “The expansion of our cloud infrastructure into France reinforces our ongoing commitment to empowering European businesses with sovereign, secure, and intelligent solutions.”

European businesses and regulators are increasingly emphasising data sovereignty, driving demand for locally hosted cloud services across the region. The European Commission published its tech sovereignty package, aiming to establish the bloc as a global leader in artificial intelligence and safeguard its digital independence.

The bloc’s Cloud and AI Development Act identified “limited data centre capacity” as a significant threat to its ability to benefit from digital transformation. The new Paris facilities represent Alibaba Cloud’s third European hub, following operations in Germany and Britain.

The firm plans to deploy a suite of agentic AI services across the region during the second half of the year. This expansion marks a further milestone in its broader international growth strategy.

At its annual Apsara Conference in Hangzhou, Alibaba Chief Executive Officer Eddie Wu Yongming announced the company’s largest overseas investment in AI infrastructure. The plan includes new cloud regions in Brazil, France, and the Netherlands, along with capacity expansions in Mexico, Japan, South Korea, Malaysia, and Dubai.

The planned agentic AI services will encompass the development, deployment, and operation of AI agents. These services will offer enterprises tools to build, test, and monitor AI systems while fulfilling security and compliance requirements, the company stated.

Alibaba Cloud ranks fourth globally by revenue but remains a comparatively small player in the European region. American technology giants heavily dominate the market; Amazon Web Services, Microsoft Azure, and Google Cloud collectively account for approximately 70% of the region’s cloud infrastructure revenue, according to Synergy Research Group. All European providers combined hold only 15% of the market share.

Alibaba Cloud has operated in Europe since 2016, establishing its first data centre in Frankfurt. The company has recently increased its regional profile through partnerships and sponsorships, including a six-year agreement with UEFA covering the Champions League and Euro 2028.

High-technology sectors, including cloud services and AI, are a rapidly expanding part of Alibaba’s operations. Its Cloud Intelligence Group reported a 38% increase in revenue during the first quarter of the year, reaching USD 6.15 billion. AI-related products comprised approximately 30% of external cloud revenue, following 11 consecutive quarters of triple-digit growth. The company has committed at least 380 billion yuan to AI and cloud infrastructure over a three-year period. Alibaba owns the South China Morning Post.

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• Alibaba Cloud has launched its first data centres in France, expanding its European presence.

• This move responds to growing customer demand and increased emphasis on data sovereignty in Europe.

• The company plans to introduce agentic AI services across the region in the second half of the year.

  
  

Source: SCMP