Chinese e-handelsgiganten Alibaba is on the prowl for a new data center in Europe, in addition to the first, which opened in Frankfurt in november.
Alibaba’s new choice can be – Sweden.
One reason that Alibaba is in so great need of the new data center is that the company sells so-called cloud computing services to businesses. A competitor – a company that reached even further than Alibaba in this area – is the american Amazon. Another rival in this field is Google.
Cloud services is one of alibaba’s fastest growing activities, and an example of the extreme growth is that revenues in the latest quarter doubled.
But just Europe has so far been a problem child for the chinese company. According to it for international business and public relations work, Lin Luo, Alibaba has not yet found the right tactics in Europe. That one only has a single data center in Europe is regarded by Alibaba as a part of the problem.
”Just now Europe is really a weak region for us, a very weak. /…/ We need to come up with the best strategy for the area,” said Lin Luo to Bloomberg News. According to the news agency mentions Alibabachefen specifically, two potential locations for new data centers: London and Sweden.
Even if the cloud services to date, accounting for a smaller part of alibaba’s revenues, this change significantly within a few years. Bank JP Morgan Chase writes in a recent analysis that alibaba’s cloud computing about four years, in 2021, can generate 15 per cent of the group’s revenue.
Tradingportalen/Agency Directly.
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