China's technology heavyweight Alibaba (BABA 5.30%) announced that it will invest 200 billion yuan ($28 billion) on cloud infrastructure over the next three years, Bloomberg reports.
Alibaba is a market leader in the Cloud segment in Asia. Now, the company aims to gain share in other international markets.
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Alibaba's cloud business has been its fastest-growing segment for a while. In the December quarter, Alibaba's cloud sales surpassed 10 billion yuan ($1.41 billion) for the first time in a single quarter. While Alibaba's total sales grew 38% year-over-year in Q4, the cloud business experienced revenue growth of 62%.
Alibaba will be hoping to gain market share from other large cloud players such as Amazon, Microsoft and Alphabet's Google. The global cloud infrastructure spending in 2019 stood at $107.1 billion, up 37.6% from $77.8 billion spent in the prior-year period, according to Canalys.
