Alibaba Cloud has decided to close down its data centre operations in Australia and India, which marks a strategic shift in its global infrastructure strategy. Despite previous assurances of continuity, the Chinese cloud giant confirmed the closure plans, citing a redirection of investments towards Southeast Asia and Mexico.

The decision impacts customers in Australia and India, who have been notified of the shutdown deadlines: 30 September for Australia and 15 July for India. After these dates, data stored in these regions will no longer be accessible, prompting Alibaba Cloud to advise customers to migrate to alternative data centres.

Alibaba Cloud's move reflects broader geopolitical considerations. In Australia, where major global cloud players like AWS, Azure, and Google dominate, the decision comes amid cooling public sentiment towards Chinese investments. Meanwhile, despite its robust economic growth in India, strained bilateral relations between Beijing and Delhi likely influenced Alibaba Cloud's exit strategy.

In contrast, Alibaba Cloud is eyeing expansion in Southeast Asia and Mexico, where it sees potential growth opportunities aligned with its data centre capabilities. The realignment also underscores Alibaba Cloud's focus on optimising its global data centre footprint to maximise operational efficiency and market relevance.

The shift from Australia and India underscores Alibaba Cloud's strategic focus on regions with favourable geopolitical and market conditions while consolidating its presence in high-growth markets like Southeast Asia and Mexico.