Alibaba Group Holding Ltd. plans to launch a second data center in South Korea by the end of June, according to a Thursday statement. The facility will support cloud computing and artificial intelligence services for local businesses.
The new site is part of Alibaba’s 380 billion yuan investment in AI and cloud infrastructure announced earlier this year. A data center is a secure facility housing servers and networking equipment to process and store large volumes of data.
Alibaba said growing demand from South Korean firms for scalable computing and AI tools drove the expansion. The first South Korea center went live last year, and this follow-up aims to boost capacity for applications such as e-commerce, machine learning and enterprise software.
The move underscores Alibaba’s effort to extend its cloud footprint beyond China. Analysts note that regional data hubs can reduce latency and comply with local regulations on data storage. South Korea’s fast-growing digital economy makes it a strategic market for cloud providers.
Based on the one year price targets offered by 38 analysts, the average target price for Alibaba Group Holding Ltd is $159.54 with a high estimate of $189.16 and a low estimate of $101.94. The average target implies a upside of +40.58% from the current price of $113.49.
Based on GuruFocus estimates, the estimated GF Value for Alibaba Group Holding Ltd in one year is $110.76, suggesting a downside of -2.41% from the current price of $113.49. Yahoo Finance