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Alibaba invests in data center and logistics hub in Turkey
Chinese IT giant Alibaba plans to expand its business in Turkey. The president of the technology corporation announced the launch of a large-scale program, which includes the opening of a data center near Ankara. The amount of investment allocated by Alibaba was about $1 billion. In addition to the data center, the funds will be used to implement other projects in Turkey. Alibaba is confident that the expansion of activities in this country will help stimulate the growth of business income.
Investments will also be used to create a logistics hub at Istanbul Airport. Such a step will allow expanding Alibaba’s infrastructure in Turkey and improve the supply chain. It should be noted that Istanbul airport is a convenient logistics hub for deliveries to both Europe and the Middle East.
As for the data center, it should be the largest in Turkey, but there are no other details about the project yet. Alibaba Cloud is a powerful platform with a sophisticated structure. Its ecosystem consists of 28 cloud regions and 86 availability zones located around the world. The platform is expanding regularly, for example, new data centers opened in 2022 in Thailand, Germany, and Japan.
Alibaba Cloud has been focusing on improving operations, which has become a hot topic since the December 2022 outage. At the time, a number of cloud services failed to respond for about 30 hours, making it the biggest problem Alibaba Cloud has had in 10 years. The failure led to a change in the platform’s management and global changes in the resource’s operations.
Alibaba Cloud is China’s largest cloud service, which provides services to a huge number of companies from the U.S., Europe, Asia, and other regions. Even though Amazon’s AWS cloud platform has entered the PRC market, it loses significantly to Alibaba’s service.
For the Chinese corporation, the development of Alibaba Cloud is one of the priority areas. In addition to the fact that the demand for cloud services is actively growing, the competition in the e-commerce sector is increasing, and Alibaba may lose its position here. Therefore, the technology giant is putting more and more effort into expanding cloud capabilities.
For example, Alibaba Cloud plans to equip its data centers with modern processors with advanced ARM technology. By 2025, these chips are expected to be used on about 20% of all the corporation’s servers. The new generation of ARM processors was developed in Alibaba’s own center in 2021. They have high-performance indicators and are excellent for use in data centers where large data sets need to be processed in a short time.