Alibaba Cloud has stated that it will discontinue datacenter operations in Australia and India, focusing its efforts in Southeast Asia and Mexico.
Since December 2023, Alibaba Cloud has notified impacted customers and provided technical migration plans. Datacenter operations will conclude in Australia on September 30 and in India on July 15.
Despite receiving indications about impending closures in February 2024, Alibaba Cloud first denied plans to downscale or terminate its Australian facilities, which was later proved to be an attempt to avoid accountability.
Customers in Australia and India should transfer their data to other Alibaba Cloud datacenters to avoid disruptions beyond the closing dates.
Geopolitical pressures and market dynamics have also influenced Alibaba Cloud's choice. Australia's limited market size and anti-Beijing sentiment, as well as India's strained relations with Beijing, influenced the decision.
Alibaba Cloud is prioritizing growth in Mexico and Southeast Asia, which are supported by the presence of Chinese manufacturers, reflecting the company's strategy shift toward more favorable regions.