Alibaba on Thursday announced the expansion of its global cloud computing services, highlighting its strategic focus on international growth and AI-driven innovation. The Chinese technology giant has extended the availability zone of its cloud computing products to Mexico for the first time, and plans to build new data centers in key markets including Malaysia, Thailand, and South Korea over the next three years.

Selina Yuan, President of Alibaba Cloud’s international division, emphasized the company's commitment to investing in and expanding its international data centers during an interview with CNBC on Wednesday. This move aims to bolster Alibaba's presence in the global cloud market amidst stiff competition from industry leaders Amazon, Microsoft, and Google, which collectively hold around 67% of the global market share according to Synergy Research Group. In comparison, Alibaba accounts for just under 5% of the global market share.

However, Alibaba is a dominant player in China, commanding 39% of the market according to Canalys data. The company also maintains a strong foothold in the broader Asian market. Despite these regional successes, Alibaba's cloud division has faced challenges, including a scrapped initial public offering and significant management changes.

Alibaba’s cloud unit, viewed as a pivotal future business by previous CEO Daniel Zhang and the current senior management, has seen its growth slow down in recent quarters. This month, during an earnings call, Alibaba executives projected that the cloud division would return to "double-digit growth" in the second half of the current fiscal year.

To rejuvenate its growth trajectory, Alibaba is heavily investing in AI products and aiming to attract more customers. On Wednesday, the company expanded its partnership with French luxury house LVMH, which has started utilizing Alibaba’s AI tools in China.

In 2023, Alibaba launched its large language model (LLM), Tongyi Qianwen, a sophisticated software trained on vast datasets to support various AI applications. Recently, Alibaba rolled out a more advanced version of this model to compete with Chinese rivals such as Baidu and Tencent, as well as U.S. tech giants like Microsoft, OpenAI, and Google.

Alibaba’s senior management, including CEO Eddie Wu, has consistently highlighted the company's potential in AI. Similar to Microsoft and Google, Alibaba markets its AI products through its cloud division. “We think AI is the future, is definitely the trend, and how do we support the AI and large language model? Cloud computing,” Yuan told CNBC.

Yuan expressed confidence in the future of Alibaba Cloud, noting, “We think it is really the right time for Alibaba Cloud. We have cloud computing, a very clear strategy, and our large language model. I think we can do more for our business, customers, and partners.”

The expansion of Alibaba Cloud's services to new regions and its significant investment in AI underline the company's strategy to become a formidable global player in the cloud computing and AI sectors. This aggressive expansion plan and focus on cutting-edge technology are aimed at driving growth, enhancing customer experiences, and maintaining a competitive edge in an increasingly crowded market.