Alibaba Cloud Launches Cloud Solutions in Brazil, Offering AI Capacities Ranging from 30 to 70 MW, with Contracts Not Yet Signed

cryptonews.ruPublicado em 2026-08-28Última atualização em 2026-08-28

Resumo

Alibaba Cloud has launched its first cloud region in Brazil, offering local businesses a Chinese-backed alternative to U.S. hyperscalers. The region features two availability zones, making it the company's second in Latin America after Mexico. While the launch is operational, Alibaba Cloud is still negotiating with data center providers to secure the substantial power required for AI workloads, with contracts for 30 to 70 MW yet to be finalized. Initial procurement involved three 4 MW sites. The company is promoting enterprise-level "AI agent services" in Brazil, including solutions for database automation and threat response, and is partnering with local firms like Insi and 4Linux. This expansion occurs amid intense U.S.-China competition for market share in developing economies. Despite a 76% drop in quarterly profit, Alibaba's cloud revenue grew 45%, and the company has committed to massive global investments in cloud and AI infrastructure, targeting $100 billion in combined revenue over five years.

On Thursday, Alibaba Cloud launched its first cloud region in Brazil. The company still needs to procure the main portion of electricity required for AI: negotiations with data center providers for supplies ranging from 30 to 70 MW are still ongoing.

This region offers local businesses an alternative to American hyperscale companies, backed by China.

RFP Covered Three Sites with 4 MW Each

The launch includes two availability zones. Brazil is the company's second cloud region in Latin America after Mexico, which opened in February 2025.

Today, Alibaba manages 106 availability zones in 31 regions worldwide. The company confirmed this number on Thursday.

Industry sources reported that Alibaba issued a tender in the market for building three sites with 4 MW capacity each.

One source said that loads of 30 to 70 MW are still in the market, meaning no provider has yet signed a contract with them.

Part of the existing capacity may be located at facilities operated by Ascenty in the inland areas of São Paulo state. Ascenty did not confirm this.

🚀 Alibaba Cloud is now in Brazil.

We have launched our first cloud region in Brazil to accelerate the transformation towards cloud and artificial intelligence. With new data centers, the local infrastructure provides secure, resilient, and scalable cloud services with low latency and data management for Brazilian users... pic.twitter.com/4p9mbpNp3W

— Alibaba Cloud (@alibaba_cloud) August 27, 2026

Profit Fell by 76%, While Capital Expenditure Rose by 75%

Alibaba is not just selling servers. In Brazil, the company offers what it calls enterprise-level "AI agent services."

The portfolio includes solutions for database automation, threat response, and isolated sandboxes for scalable AI agent operations.

The Brazilian technology company Insi joined the initiative to assist medium and large firms wishing to migrate.

The company 4Linux, specializing in open-source software development, is close to finalizing a deal to combine Qwen with deployment and training services. Alibaba said it is targeting startups in e-commerce, fintech, and AI.

"Brazil is one of the world's most dynamic digital economies and a new market of key importance for Alibaba Cloud's expansion in Latin America," said Allen Guo, the company's General Manager for Latin America and Vice President of International Business.

Alibaba Cloud's account on platform X states that this region was created to "accelerate the transformation towards cloud and artificial intelligence" for customers in Brazil.

The AI push in Brazil occurs against the backdrop of US and Chinese competition for market share in developing countries. Alibaba forecasts global investments in cloud infrastructure and AI amounting to $53 billion.

This is part of a stated goal to achieve a combined cloud and AI revenue of $100 billion within five years.

Alibaba's quarterly profit for the three months ending June 30 fell by 76% to 10.54 billion yuan, or $1.55 billion, despite a 9% revenue growth. AI capital expenditure jumped by 75%, reports Cryptopolitan.

Cloud service revenue grew by 45% in the same quarter.

Perguntas relacionadas

QWhat is the main reason Alibaba Cloud launched its first cloud region in Brazil?

ATo provide an alternative to US hyperscalers and accelerate cloud and AI transformation for Brazilian customers, targeting industries like e-commerce, fintech, and AI startups.

QHow much electricity capacity is still under negotiation for Alibaba Cloud's AI operations in Brazil?

ABetween 30 to 70 MW of power supply contracts are still under negotiation and not yet signed.

QWhat is the financial performance context mentioned for Alibaba Cloud as it expands in Brazil?

AFor the quarter ending June 30, its net profit fell 76% while AI-related capital expenditure surged 75%, despite a 45% revenue growth in cloud services.

QWhich Brazilian companies are mentioned as partners in Alibaba Cloud's expansion initiative?

AInsi, to assist medium and large firms with migration, and 4Linux, which is close to a deal to combine the Qwen model with deployment and training services.

QWhat are some of the key services included in Alibaba Cloud's corporate-level 'AI agent services' portfolio for Brazil?

AThe portfolio includes solutions for database automation, threat response, and isolated sandboxes for scalable AI agent operations.

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