Three Years After the First Data Center in 2022, a New Facility Established
"Responding to Surging Demand for AI Infrastructure"
Addressing Security Concerns: "Various Certifications Acquired... No Overseas Data Leakage"
Alibaba Cloud, the cloud service subsidiary of China's Alibaba Group, is officially launching its second data center in Korea.
Yoon Yongjun, Head of Alibaba Cloud Intelligence Korea, stated at a media briefing held on the morning of June 19 at the Grand Intercontinental Seoul Parnas in Gangnam-gu, Seoul, "The second data center in Korea demonstrates how strategically Alibaba Cloud views the Korean market."
Yoon Yongjun, Head of Alibaba Cloud Intelligence Korea, is making a presentation at a press conference held on the morning of the 19th at the Grand Intercontinental Seoul Parnas in Gangnam-gu, Seoul. Provided by Alibaba Cloud
Alibaba Cloud plans to begin operating its second data center in Korea by the end of June. Having entered the Korean market in 2016, Alibaba Cloud established its first Korean data center in 2022, and with this launch, it is adding another data center after three years. However, the company did not disclose specific information such as the size or processing capacity of the new data center. Both data centers are located in Seoul.
Alibaba Cloud emphasized that the second data center enables the company to implement a multi-cloud strategy. IT companies typically take redundancy measures by storing the same data on two or more servers to prepare for situations such as data center failures. Until now, Alibaba Cloud operated only one data center in Korea, which limited redundancy. As a result, clients had to duplicate their data in data centers located in neighboring countries such as Japan.
The company expressed confidence regarding security concerns that are often associated with Chinese IT companies. Lim Jongjin, Senior Solutions Architect at Alibaba Cloud Intelligence, explained, "It is difficult to comment specifically on China's data protection laws, but we comply with more than 150 global compliance standards." Yoon also said, "We comply with various data regulations not only in Korea but also in global markets," and added, "We emphasize that we are a certified secure provider through regulatory compliance."
In response to a question about whether data stored in Korean data centers is ever transferred abroad, including to China, Lim reiterated, "It is mandatory under the domestic Information Security Management System (ISMS) certification, which we obtained in December 2023, that Korean data is not transferred overseas," and emphasized again, "Korean data is not leaked abroad."
Lim Jongjin, Senior Solutions Architect at Alibaba Cloud Intelligence, is presenting at a press conference held on the morning of the 19th at the Grand Intercontinental Seoul Parnas in Gangnam-gu, Seoul. Provided by Alibaba Cloud
Alibaba Cloud plans to increase its domestic customer base by leveraging price competitiveness. Yoon stated, "We will also provide benefits in terms of pricing," and added, "We are preparing special promotions."
There was also a question about whether the company plans to enter the public cloud sector. Foreign cloud providers such as Amazon Web Services (AWS), Google Cloud, and Microsoft (MS) have recently acquired the Cloud Security Assurance Program (CSAP) certification required to enter the Korean public sector. Regarding this, Yoon said, "There are no finalized plans regarding CSAP," but added, "If specific details are confirmed, we will provide updates in the future."
During the press conference, cases of Korean companies utilizing Alibaba Cloud's AI solutions were introduced. Alibaba Cloud has developed and provides large language models (LLMs) such as 'Qwen' and 'Tongyi.' Korean AI solutions company Univa unveiled an agent AI solution based on Qwen. Snow, a subsidiary of Naver, is also using Alibaba Cloud's AI video generation model 'Wan' to support image styling features for an app currently operating in China.
Lim stated, "Alibaba Group plans to invest 380 billion yuan (approximately 70 trillion won) in AI and cloud infrastructure over the next three years," and added, "We aim to enhance the capabilities of domestic clients in the field of generative AI."
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