Tencent and Alibaba expand APAC cloud infrastructure

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The latest facility will provide compute, storage, networking, security, and database services, alongside infrastructure and services for AI workloads.Yongjoon Yoon, country manager of South Korea at Alibaba Cloud Intelligence, said the company has continued to invest in the market over the long term.“The third data centre is not merely an infrastructure expansion.It is an investment to help South Korean enterprises operate AI and cloud-based services more reliably,” Yoon said.The expansion forms part of Alibaba’s three-year commitment to invest at least RMB380 billion, or about US$53 billion, in AI and cloud infrastructure.

Alibaba has also recently added infrastructure in France, Japan, Malaysia, and Mexico.The company now operates 104 availability zones across 30 regions globally.Alibaba’s cloud business has also reported higher revenue as the company increases infrastructure spending.Alibaba Cloud Intelligence revenue increased 38% in its latest reported quarter, while AI products accounted for about 30% of external cloud revenue, according to figures reported by in May.Alibaba said at the time that its AI infrastructure spending would exceed the RMB380 billion programme announced in 2025 as it continued to increase cloud computing capacity.Tencent enters Malaysia’s cloud marketTencent’s planned Malaysian cloud region will comprise up to three availability zones in Johor.The company said the local infrastructure will support AI workloads, data-heavy applications, and digital services used by Malaysian enterprises.Bluefin Jiannan Zhao, vice president of Tencent Cloud and managing director of Tencent Cloud International for Asia Pacific, said the company sees Malaysia as a potential hub for its Southeast Asian operations, citing the country’s technology infrastructure and talent base.

“Malaysia remains a key market in Tencent Cloud’s growth strategy across Asia,” Zhao said.At the time of the announcement, Tencent Cloud International said its infrastructure network covered 66 availability zones across 23 regions.The Malaysian region extends a regional footprint that already includes infrastructure in markets such as Singapore, Indonesia, and Thailand.Nucky Fang, general manager of Tencent Cloud International and Tencent Cloud Malaysia, told The Edge Malaysia that the company had seen more opportunities in the country over the previous six months, particularly among banks, insurers, payment companies, and other large enterprises.Johor has become one of Malaysia’s main centres for data-centre development.reported in July that the state had attracted about US$35 billion in investment.JLL estimated that Johor’s planned data-centre capacity, including projects under construction and in the pipeline, could reach around 7GW, about eight times current levels.The expansion has increased scrutiny of electricity and water use.

reported that new projects must explain how they will source power, while Johor has restricted particularly water-intensive data-centre designs.Malaysia’s investment authorities have also cited projections that electricity demand from data centres could exceed 5,000MW by 2035.Tencent is entering a Malaysian cloud market where other hyperscalers already operate local infrastructure.AWS opened a three-zone Malaysia region in August 2024, while Microsoft’s three-zone Malaysia West region became generally available in May 2025.Microsoft is also developing another cloud region in Johor Bahru.AWS and Microsoft have cited local workload hosting and data residency among the reasons for establishing infrastructure in Malaysia.South Korea adds AI computing capacityAlibaba’s new facility is also being added as South Korea expands its domestic AI computing infrastructure.

The country’s Ministry of Science and ICT broke ground on the National AI Computing Center in Haenam on August 3, with plans for the facility to house more than 15,000 AI chips by 2028.The project is being developed through a public-private structure led by Samsung SDS, with participation from companies including Naver Cloud, Kakao, and KT.Private-sector AI data-centre projects are also planned.reported in June that SK, GS Group, and Naver initially planned about 550 trillion won of investment in projects representing a combined 8.4GW of AI data-centre capacity, with construction targeted to begin by the first half of 2028.The Tencent and Alibaba announcements come as global spending on cloud infrastructure services continues to increase.Synergy Research Group estimated that worldwide enterprise spending on cloud infrastructure services reached US$143.4 billion in the second quarter of 2026, up more than US$43 billion from a year earlier.The 43% year-on-year increase was the highest growth rate recorded by Synergy in eight years.

The research firm identified generative AI as the main driver of the increase and said generative AI-specific cloud services grew 165% year over year.Malaysia was among the markets where cloud infrastructure spending grew at a rate above the worldwide average during the quarter, alongside India, Indonesia, Ireland, and Thailand, according to Synergy.The research firm did not provide a comparable figure for South Korea in its public Q2 data.AWS, Microsoft, and Google still account for most global cloud infrastructure spending.Synergy estimated their Q2 2026 market shares at 28%, 20%, and 15%, respectively, while the three providers accounted for 67% of the public cloud market.Citing Gartner’s 2025 IaaS market share report, Alibaba said its share of Asia-Pacific IaaS revenue reached 22.5% in 2025, up from 20.8% a year earlier, compared with a 7.7% worldwide share.See also: IBM Cloud and Together AI expand AI infrastructure with NVIDIAWant to learn more about Cloud Computing from industry leaders? Check out Cyber Security & Cloud Expo taking place in Amsterdam, California, and London.

The comprehensive event is part of TechEx and is co-located with other leading technology events, click here for more information.Cloud Computing News is powered by TechForge Media.Explore other upcoming enterprise technology events and webinarsAbout the Author Muhammad ZulhusniJournalist As a tech journalist, Zul focuses on topics including cloud computing, cybersecurity, and disruptive technology in the enterprise industry.He has expertise in moderating webinars and presenting content on video, in addition to having a background in networking technology.Related Amazon shifts AWS workloads as power constraints tighten17th August 2026 IBM Cloud and Together AI expand AI infrastructure with NVIDIA13th August 2026 Oracle brings Quantinuum quantum computing to OCI12th August 2026 What Happens When a Code-Signing Key Is Stolen?11th August 2026 Amazon shifts AWS workloads as power constraints tighten17th August 2026 IBM Cloud and Together AI expand AI infrastructure with NVIDIA13th August 2026 Oracle brings Quantinuum quantum computing to OCI12th August 2026 What Happens When a Code-Signing Key Is Stolen?11th August 2026 Join our CommunitySubscribe now to get all our premium content and latest tech news delivered straight to your inbox Click here Popular XaaS ModelsSoftLayer beefs up its bare metal offering, available on hourly basis 30590 view(s)Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20655 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12693 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 6996 view(s)XaaS ModelsSoftLayer beefs up its bare metal offering, available on hourly basis 30590 view(s)Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20655 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12693 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 6996 view(s) See all Latest View All Latest Quantum & Cloud12th August 2026Oracle brings Quantinuum quantum computing to OCI Sponsored Content11th August 2026What Happens When a Code-Signing Key Is Stolen? Cloud Computing10th August 2026Microsoft opens fourth cloud region in India Quantum & Cloud12th August 2026Oracle brings Quantinuum quantum computing to OCI Sponsored Content11th August 2026What Happens When a Code-Signing Key Is Stolen? Cloud Computing10th August 2026Microsoft opens fourth cloud region in India SubscribeAll our premium content and latest tech news delivered straight to your inbox Subscribe ExploreAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyReach Our AudienceAdvertisePost a Press ReleaseContact UsAdvertisePost a Press ReleaseContact UsCategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesOther PublicationsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsCloudTech News is part of TechForge  SubscribeAll our premium content and latest tech news delivered straight to your inbox

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