Alibaba expands cloud and AI capacity to 20 gigawatts by 2032

Alibaba Group Holding Limited is significantly expanding its global cloud and artificial intelligence infrastructure, aiming to reach 20 gigawatts of capacity by 2032. This expansion is intended to bring Alibaba Cloud services closer to customers in regions including Europe, the Middle East, and Asia, specifically targeting locations such as Germany, France, the United Arab Emirates, Malaysia, and Hong Kong.

In tandem with these technical investments, the company has adjusted its share capital through employee stock-based compensation programs. This involved the issuance of two tranches of new ordinary shares, totaling approximately 7.6 million and 1.55 million shares respectively.

Financial reports indicate a period of high investment and shifting margins. While revenue for the first quarter of fiscal year 2027 grew by 9% year-on-year to 268.953 billion RMB, net profit saw a significant decrease of 75% to 10.444 billion RMB. This decline is attributed to heavy capital expenditures, as revenue from AI cloud and computing services rose by 45% to 48.437 billion RMB amidst substantial investment costs.