Alibaba's Data Center Expansion: Seizing the AI Market Opportunity

Alibaba Cloud invests heavily in AI infrastructure, generating $4.15 billion in Q4 2025. A $52.7 billion commitment over three years expands data centers in Malaysia and the Philippines, responding to Southeast Asia’s demand for cloud services. With 90 availability zones across 29 regions, Alibaba solidifies its global cloud market position.

Competition heats up as Amazon and Microsoft accelerate global data center investments. Amazon plans expansions across Australia, while Microsoft opens new data centers in Austria and Taiwan. Alibaba faces stiff competition in the data center buildout race amid rising demand for AI-ready infrastructure.

Alibaba’s stock outperforms the industry with a 22.5% YTD gain. Trading at a forward P/E ratio of 9.76X, Alibaba boasts a Value Score of A. The Zacks Consensus Estimate for Q1 fiscal 2026 earnings stands at $2.48 per share, indicating 9.73% YoY growth.

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Read more at Nasdaq: Can Alibaba’s Data Center Expansion Capture the Growing AI Market?