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© Reuters.By Gina Lee
Investing.com – China’s Alibaba (NYSE:) Group Holding Ltd (HK:) plans invest CNY 200 billion ($28.27 billion) on cloud infrastructure over the next three years in an overseas push for one of its fastest growing businesses.
The e-commerce giant said that it plans to build more data centers to complement its existing network in 21 regions globally.
It will also invest in its in-house technologies supporting the extension, such as AI-inference chips, as it looks to expand beyond its traditional e-commerce focus.
The company announced in February that its cloud computing sector recorded a CNY 10.7-billion-yuan profit in the December quarter, mainly derived from the public cloud and hybrid cloud operations.
The COVID-19 pandemic also pushed demand up for the sector as most employees worked from home. But the increased demand also put pressure on the network and led to complaints of lags.
Alibaba’s Hong Kong stock fell 0.19% to HK$207.20 by 12:40 AM ET (5:40 AM GMT).
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