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Alibaba Cloud picks Brazil as its next South American cloud bet

Alibaba Cloud launched its first Brazilian cloud region this week, two data centers built to handle mission-critical workloads that need low latency and strong data governance. This marks the company’s first cloud presence in South America, and it builds directly on the Mexico region it opened back in February 2025.

With Brazil now live, Alibaba Cloud operates 106 availability zones spread across 31 regions worldwide, part of a $53 billion global bet on AI infrastructure. Allen Guo, who runs Alibaba Cloud’s Latin America operations, called Brazil one of the world’s most dynamic digital economies and, in turn, framed the region as central to the company’s broader Latin American strategy. The pitch to local businesses is straightforward, though: local infrastructure, a full cloud and AI portfolio, and a growing partner network to help Brazilian companies build AI capabilities while staying connected to Alibaba’s global cloud footprint.

The new region covers the usual cloud fundamentals, computing, storage, networking, databases, and cloud-native tools, all built to meet Brazil’s cybersecurity and data governance rules. As a result, local customers get better uptime and disaster recovery baked in from the start. Alibaba Cloud is also bringing a full suite of enterprise AI agent services to Brazil, including tools for agent security, sandboxing, and data analytics, aimed specifically at companies deploying AI agents at scale rather than just experimenting with them.

Local partnerships, meanwhile, are already forming around the launch. Insi, a Brazilian tech solutions provider, plans to use Alibaba’s cloud and AI tools to serve corporate clients going through modernization projects, since the local region gives it the performance and data residency those clients need. Separately, 4Linux, which specializes in open-source and IT services, is pairing Alibaba’s Qwen models with its own deployment expertise to bring generative AI tools to Brazilian companies.

The Brazil launch, notably, lands right after Alibaba pushed out several open-source Qwen model updates, including Qwen3.8-2.4T-A95B, currently the most capable model in the Qwen lineup. Between the new region and the model releases, then, Alibaba Cloud is positioning Brazil as a genuine growth market, alongside existing operations in Mexico, France, Japan, South Korea, and Malaysia.

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