Alibaba Group Holding Ltd is planning to invest $ 28 billion in cloud services infrastructure in 3 years term. Such large-scale investments are caused by sharply increased demand in connection with the epidemic of coronavirus, notes NIX Solutions.
In a statement, the company noted that funds will be invested in the development of semiconductors, the creation of operating systems, as well as in the construction of data centers.
At a time when most Chinese office workers worked from home, the company had to cope with the multiply increased load on services. The greatest growth was observed in the use of the DingTalk service, which is intended for video conferences. The increased number of users and workloads have led to delays and disconnections several times.
Jeff Jang, president of Alibaba Cloud Intelligence, stated that the COVID-19 epidemic “led to an increased burden on the economy in various sectors,” and that “the company will try to accelerate the restoration of business processes.”
Cloud services are one of Alibaba Group’s fastest-growing and most popular services. Alibaba Cloud Intelligence reported revenue growth of 62% in the fourth quarter of 2020, to 10.7 billion yuan. The Chinese Internet giant owns more than 46.4% of the cloud computing market, reports Reuters.