Alibaba Cloud launches first South American cloud region in Brazil

Alibaba Cloud has launched its first cloud region in South America with the opening of two data centers in Brazil. This expansion aims to provide local businesses, startups, and public institutions with low-latency cloud computing, storage, and security services, while ensuring compliance with local data governance and cybersecurity regulations.

The move is part of a broader global commitment by Alibaba Group to invest $53 billion in artificial intelligence infrastructure. In Brazil, the company plans to introduce enterprise-grade “agentic AI services” designed to automate complex tasks such as database management and threat response. To support its entry into the Brazilian market, Alibaba Cloud has established partnerships with local technology firms Insi and 4Linux.

This deployment positions Alibaba as a significant competitor to US-based hyperscalers like AWS, Microsoft, and Google in the region. While the company has activated its initial infrastructure, industry reports indicate that Alibaba is still negotiating for additional power capacity, with 30MW to 70MW of AI-related demand still under discussion with providers.