China’s online retail giant Alibaba announced on Monday that it will invest an additional 200 billion yuan (about $28 billion) in its cloud infrastructure over the next three years, in part due to increased demand for services such as enterprise software, video conferencing and live to stream, Reuters reported.
This growing demand for cloud resources has come at a time when people are forced to stay at home to comply with containment measures and companies are preparing for the COVID-19 pandemic by allowing their employees to work from home.
According to a company press release, the investment will focus on expanding Alibaba cloud technology, including the operating system, servers, and chips, in the company’s data centers. The provider currently has 63 availability zones located in Asia, Australia, the Middle East, Europe, and the United States.
In his press release, Jeff Zhang, President of Alibaba Cloud Intelligence and Chief Technology Officer of Alibaba Group, said, “By increasing our investment in cloud infrastructure and core technologies, we expect to continue to provide world-class reliable IT resources to help companies accelerate the recovery process and deliver intelligent cloud-based solutions to support their digital transformation in the post-pandemic world.
The new coronavirus was discovered in China last December and has begun to cause deaths in the country. Strict quarantine and containment measures are being followed by the authorities to reduce the speed of the virus spreading across the country.
While most Chinese employees worked from home throughout February, Alibaba, the country’s leading cloud computing company, saw an increase in the use of its software, including DingTalk, a workplace chat application used by businesses and schools.
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