On Wednesday, Alibaba Group Holding Ltd opened a new cloud computing center in Silicon Valley, underscoring its global ambitions against tough competition.
The new California data center is the ultimate measure of expansion for a Chinese company on US soil, in a market dominated by Amazon.com Inc, Microsoft Corp and Google Inc.
The data center will target US companies seeking a presence in both countries, said Ethan Yu, Vice President of Alibaba Cloud International Business.
Aliyun, a division of Alibaba Cloud, wants the new data center to initially provide Chinese companies with US operations, including retail, internet and video games.
“This is a very strategic move for us,” said Yu, who declined to say how much Alibaba invested in the data center and its location is not disclosed for security reasons.
“International expansion is really a long-term company strategy for the coming years. Eventually we will expand to other regions, for example, to the east coast or the central United States, to meet our customers demand” he added.
Aliyun, which has been compared to a fledgling version of Amazon Web Services, began as part of the internal technical infrastructure of the company, but has since expanded to lease storage space and processing for small and medium enterprises in China internet .
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