Alibaba Cloud, the digital technology and intelligence arm of Alibaba Group, has officially announced the launch of its second data center in Dubai.
Responding to the growing demand for cloud computing and artificial intelligence (AI) services from local businesses, the move marks a new milestone since Alibaba Cloud’s foray into the region in 2016 with its first data center in Dubai, the firm said in a statement on Tuesday.
The launch, as part of Alibaba’s previously announced investment plan of RMB 380 billion ($53 billion) in AI and cloud infrastructure over the next three years, underscores the company’s commitment to supporting enterprises in the region and beyond to thrive through implementing its scalable, robust and secure cloud infrastructure and AI technologies.
With the establishment of its new data center, Alibaba Cloud expands its product portfolio to include enhanced cloud native and AI solutions, as well as big data, database, elastic computing, storage, and network offerings to better support the growing business demand from local customers for AI and cloud adoption.
Projected to achieve significant improvements in cloud resilience and network performance, the move is expected to ensure increased availability and disaster recovery of Alibaba Cloud’s core cloud products.
“Launching a new data center in Dubai as well as announcing innovative collaborations at GITEX Global 2025 are important signposts on our robust journey of expansion in the region,” said Eric Wan, Vice President of Alibaba Cloud International and General Manager of the Middle East, Turkey, and Middle Asia at Alibaba Cloud Intelligence.
“The Middle East’s advantageous position in fast-tracking AI adoption and its collaborative ecosystem are crucial enablers for private and public sector companies to thrive,
“We look forward to enabling more local and global businesses to succeed with our robust infrastructure and advanced AI solutions in the region,” he added.
Companies in the finance, healthcare, gaming, media, and Internet sectors joined forces with Alibaba Cloud during GITEX Global 2025, to benefit from its local infrastructure capabilities and worldwide tech leadership, speeding AI deployment and business growth.
For instance, Wio Bank, the Middle East’s leading digital financial platform, has signed a memorandum of understanding (MoU) with Alibaba Cloud to accelerate innovation across cloud computing, AI, and fintech.
The strategic collaboration strengthens Wio Bank’s multi-cloud strategy and fast-tracks the adoption of generative AI, by leveraging Alibaba Cloud’s advanced Qwen large language model, Platform for AI (PAI), and agentic platforms.
Together, the companies will co-create AI-powered banking agents to enhance operations and elevate customer service- securely hosted on Alibaba Cloud’s data centers in Dubai – for greater scalability, efficiency, and speed to market.
Meanwhile, BYOND Asia, an AI company specializing in hyper-realistic, real-time conversational digital humans, has signed an MoU with Alibaba Cloud to accelerate the deployment of its patented HoloMe digital human solution across the Middle East and global markets.
Through this collaboration, BYOND Asia will leverage Alibaba Cloud’s Large Language Model (Qwen) and its Model Studio AI development platform to enhance the intelligence and localization of its HoloMe avatars — starting with Arabic-first digital humans tailored for Middle Eastern enterprises and public sectors.
The collaboration also includes migrating BYOND’s HoloMe cloud services to Alibaba Cloud’s local and global infrastructure, boosting performance, scalability, and compliance across regions.
The two entities will co-develop industry-specific digital avatar solutions spanning entertainment, retail, media, education, and public sector services.
To accelerate market reach, BYOND Asia and Alibaba Cloud will also jointly execute go-to-market initiatives, leveraging Alibaba Cloud’s ecosystem partners, marketplace exposure, and regional sales networks to support BYOND’s worldwide expansion and long-term vision for next-generation digital engagement.
ACCUMED, the Middle East’s first and largest end-to-end revenue cycle management (RCM) provider for healthcare sector, also announced comprehensive collaborations with Alibaba Cloud and its local technology partner OneCloud.
ACCUMED has migrated and scaled core workloads on Alibaba Cloud’s global infrastructure—leveraging elastic compute, mature networking, and multi‑region disaster recovery technologies while adopting Alibaba’s advanced large language model Qwen to develop an AI agent for eClaims, medical coding, and customer support.
The parties will also explore listing ACCUMED’s solutions on the Alibaba Cloud Marketplace and pursue joint go-to-market and co-marketing initiatives to accelerate regional and global growth.
The Game Company, an AI‑enhanced cloud gaming platform, has also announced its collaboration with Alibaba Cloud to power its AI‑native gaming service in a scalable and efficient way.
Alibaba Cloud’s low latency network, scalable and robust infrastructure, mature compute and database services, as well as its extensive global footprint empower The Game Company to host top tier gaming services and deliver a console‑grade experience on any device without the need for high-end hardware.
The collaboration also supports The Game Company’s vision to lay the foundation for a future Gaming‑as‑a‑Service offering powered by Alibaba Cloud.
Atos, a global leader in digital transformation, and Alibaba Cloud also announced an expanded reseller partnership for the Middle East.
Through the collaboration, Atos becomes a Reseller Partner for Alibaba Cloud, bringing Alibaba Cloud’s full portfolio of cloud infrastructure, AI models and advanced technologies to enterprise customers in the Middle East as well as Asia Pacific.
This offering is further enhanced by Atos’s extensive expertise in cloud migration, managed services, AI and industry-specific digital transformation, enabling organizations to accelerate their journey to the cloud and drive innovation.
It is noted that Alibaba Cloud has been a leading provider of cloud services to local private companies and public institutions in the United Arab Emirates (UAE) and the wider Middle East region since 2016.
The company boasts a robust local ecosystem in the Middle East region with customers spanning the banking, financial services and insurance, media and public sector, as well as local partners across different sectors.
SOURCE TechnodeGlobal
