Alibaba Cloud announced the launch of its second data center in Dubai on October 14, 2025. This expansion is part of a larger 380 billion yuan (approximately $53 billion) three-year investment strategy aimed at capitalizing on the increasing demand for cloud computing and artificial intelligence services in the Middle East. The new facility is intended to support the region's growing adoption of AI, and Alibaba has announced partnerships with several local companies, including Abu Dhabi's Wio Bank. This strategic move comes as the UAE makes significant investments in artificial intelligence infrastructure. The announcement has been met with a positive analyst outlook, with many maintaining a "Strong Buy" rating on Alibaba's stock, citing strong performance in its retail business and growth in AI-driven cloud services.