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  • Alibaba Ramps Up AI Investment Despite Income Dip, Foresees Cloud Business Boom

    Alibaba Ramps Up AI Investment Despite Income Dip, Foresees Cloud Business Boom

    Alibaba, the Chinese tech behemoth, has announced that its projected artificial intelligence (AI) investment over the next triennium will surpass the initial estimation of 380 billion yuan (US$55.96 billion). This decision has been driven by promising preliminary returns on AI investments, which has encouraged the company to further bolster its cloud-computing capacity.

    Despite falling short of the market’s projected profit for the fourth quarter, Alibaba’s US-listed shares experienced a 7 per cent surge. This was in response to the company’s confident forecast for returns on AI spending in the next three to five years. Alibaba’s revenue from the Cloud Intelligence Group, in response to the burgeoning business demand for AI, grew by 38 per cent to 41.63 billion yuan ($6.13 billion) over the past year. While this growth is consistent with estimations, it does mark an increase from the preceding quarter’s 36 per cent growth.

    Investments and Future Plans

    The company’s CEO, Eddie Wu, on a post-earnings call, shared that their investments in AI, the Cloud, and e-commerce sectors were yielding clear returns. He emphasised that these technological investments were beginning to bear fruit commercially. However, Wu refrained from outlining a new spending target to replace the one that was announced in the early parts of last year.

    The company is also aiming to maintain a growth rate that surpasses the market average in an effort to secure a larger market share and further consolidate its market leadership. Wu was clear that these were the primary objectives, with profit margins currently taking the backseat. The company’s profit in the quarter to March was impacted by investments in AI and cloud infrastructure, as well as continuous spending in the quick commerce segment, which includes deliveries made within 60 minutes.

    AI demand and Alibaba’s Response

    Alibaba disclosed that AI-related products contributed to 30 per cent of external customer revenue in the cloud division in the quarter. The company anticipates AI-related revenue to become the main growth engine in the cloud business and contribute more than 50 per cent of revenues in about a year’s time.

    The company has earlier this year bifurcated its AI businesses from its cloud computing arm. Wu has been tasked with leading the “Alibaba Token Hub” group, as the company is keen on making its AI segment profitable.

    Alibaba’s net income for the quarter decreased by 99.7 per cent, with total revenue clocking in at 243.38 billion yuan. Yet, the company’s China e-commerce business, which includes the highly competitive quick commerce segment, reported a revenue of 122.22 billion yuan ($18 billion), surpassing the estimated figure of 119.85 billion yuan.

    Questions & Answers

    What is Alibaba’s outlook for AI spending in the next three to five years?
    Alibaba has a positive outlook for returns on AI spending in the coming years, which is why they are planning to increase their investment in this sector.

    What was the growth in the revenue from Alibaba’s Cloud Intelligence Group over the last year?
    The revenue from Alibaba’s Cloud Intelligence Group grew by 38 per cent to 41.63 billion yuan ($6.13 billion) over the past year.

    What are Alibaba’s plans for the AI segment of their business?
    Alibaba expects AI-related revenue to become the main growth driver in the cloud business, contributing more than 50 per cent of revenues in about a year. The company also plans to make its AI segment profitable.

  • SoftBank Innovates AI Infrastructure with Launch of Infrinia Cloud OS: A Game-Changer for GPU Cloud Services

    SoftBank Innovates AI Infrastructure with Launch of Infrinia Cloud OS: A Game-Changer for GPU Cloud Services

    SoftBank Corp., under the leadership of President and CEO Junichi Miyakawa, has unveiled a significant development from its Infrinia Team. This team, specializing in the creation of next-generation AI infrastructure architectures and systems, has designed the Infrinia AI Cloud OS. This is a robust software stack custom-built for AI data centers.

    Capabilities and Advantages of Infrinia AI Cloud OS

    The rollout of Infrinia AI Cloud OS provides AI data center operators with the ability to present kubernetes-as-a-service (KaaS) in multi-tenant environments. It also facilitates inference-as-a-service (Inf-aaS), which offers large language model inference via APIs. These features can be incorporated into operators’ individual GPU cloud services. Compared to custom-made or internally developed options, the software stack is anticipated to decrease total cost of ownership (TCO) and simplify operational intricacies. This facilitates a quicker deployment of GPU cloud services by providers while supporting the entire AI lifecycle, ranging from model training to inference, both flexibly and efficiently.

    SoftBank’s initial strategy is to incorporate Infrinia AI Cloud OS into its own GPU cloud offerings. In the future, the Infrinia Team plans to extend the deployment to overseas data centers and cloud platforms with the aim of achieving global acceptance.

    Meeting the Growing Demand

    The request for GPU-accelerated AI computing is escalating swiftly across various sectors including generative AI, autonomous robotics, simulation, drug discovery, and materials science. As a result, user prerequisites for AI computing have become diverse and complex. These encompass access to fully managed infrastructure with abstracted GPU bare-metal servers, cost-effective inference services which eradicate the need for direct GPU management, and sophisticated operational models where AI training is centralized and inference is deployed at the edge.

    Addressing these diverse needs places significant demands on GPU cloud service providers. Building and operating such environments call for in-depth technical know-how and involve complicated operational procedures. To surmount these hurdles, the Infrinia Team invented Infrinia AI Cloud OS. This solution maximizes GPU performance while easing the deployment and management of advanced GPU cloud services.

    Technical Aspects of the Software Stack

    The software stack’s KaaS capabilities automate the entire infrastructure stratum—from BIOS and RAID configurations to operating systems, GPU drivers, networking, Kubernetes controllers, and storage—on advanced GPU platforms such as NVIDIA GB200 NVL72. Additionally, it supports software-defined, on-demand reconfiguration of physical connectivity and memory, which allows clusters to be created, modified, or removed based on specific AI workload requirements. Automatic node allocation based on GPU proximity and NVIDIA NVLink domains further diminishes latency and enhances GPU-to-GPU bandwidth for large-scale, distributed workloads.

    The Inf-aaS component is crafted to empower users to deploy inference workloads with ease, providing scalable and efficient access to AI model inference via managed services.

    CEO Junichi Miyakawa emphasized SoftBank’s commitment to pioneering the AI era. The company aims to provide essential capabilities required for the large-scale deployment of AI in society through a new GPU cloud service and software business. The Infrinia AI Cloud OS software forms the core of this initiative, designed to seamlessly connect AI data centers, enterprises, service providers, and developers.

    Questions & Answers

    What is Infrinia AI Cloud OS?
    Infrinia AI Cloud OS is a robust software stack custom-built for AI data centers developed by SoftBank’s Infrinia Team.

    What features does Infrinia AI Cloud OS offer?
    It provides kubernetes-as-a-service (KaaS) and inference-as-a-service (Inf-aaS) capabilities. It can also be integrated into operators’ individual GPU cloud services.

    What are the benefits of Infrinia AI Cloud OS?
    Infrinia AI Cloud OS decreases total cost of ownership (TCO) and simplifies operational complexities. This facilitates quicker deployment of GPU cloud services by providers while supporting the entire AI lifecycle flexibly and efficiently.

  • Spark NZ and HPE Pioneer Advanced Hybrid Cloud Solutions for New Zealand’s Digital Boom

    Spark NZ and HPE Pioneer Advanced Hybrid Cloud Solutions for New Zealand’s Digital Boom

    Hewlett Packard Enterprise (HPE) recently declared that Spark NZ, a leading telecom company in New Zealand, has embarked on a series of substantial infrastructure transformations. Undertaken in conjunction with HPE, these projects aim to provide rapid and reliable hybrid cloud and managed IT services to Spark NZ’s customers. The IT overhaul will integrate new streamlined and automated features for the telecom company. Spark NZ’s objective is to entirely transform its cloud management platform in response to the substantial growth in digital consumption in New Zealand and the escalating demand for quick, reliable, and uninterrupted connectivity across all its services.

    Fostering Hybrid Cloud Growth: Merging Strategies for Optimal Cloud Solutions

    Working in tandem with HPE, Spark NZ has upgraded its antiquated infrastructure, establishing a modern, purpose-built hybrid cloud environment. This includes the integration of HPE GreenLake cloud and HPE Morpheus Enterprise Software to deliver scalable, unified services. This expansion equips Spark NZ to serve its customers more effectively with improved connectivity, advanced scalable AI solutions, and heightened control, agility, and security. The modernization process has been conducted in several stages, aimed at revolutionizing Spark NZ’s crucial infrastructure while concentrating on delivering measurable outcomes that stimulate transformative business change for customers.

    Chris Weber, Vice President and Managing Director at HPE South Pacific, expressed his pride in the partnership with Spark NZ and the innovations it has brought about. He emphasized the broad range of modern solutions HPE offers, from upgrading cloud infrastructure capability to increasing efficiency and scalability. Weber shared his anticipation regarding how the partnership will continue to yield results in the constantly evolving landscape and the business opportunities it will unveil as these projects mature.

    The Changing Face of Telecommunication Services

    The telecommunications sector in New Zealand is structured to cater to a large and widely distributed network of customers, businesses, and enterprises. As global productivity and innovation thrive, there is a rising demand for inventive solutions to meet the requirements of critical national infrastructure and private enterprises. Spark NZ’s proactive approach to embracing new solutions positions New Zealand competitively on the global stage, prioritizing improved customer outcomes and enhanced cost-efficiency.

    Penny White, Business Technology Services General Manager at Spark NZ, emphasized the changing needs of businesses as technology evolves. She noted that depending solely on public or on-premises cloud does not provide the flexibility, control, and speed necessary for them to maximize the benefits of technology to boost productivity. White stated that these barriers can be surmounted by hybrid cloud – the area where Spark NZ is focused. She affirmed that their strategic partnership with HPE has not just fortified their foundational infrastructure but also enabled them to continue delivering a seamless, user-friendly experience to their customers while unlocking enhanced efficiency, tangible business outcomes, and new potential capabilities.

    Questions & Answers

    What is the goal behind Spark NZ’s infrastructure transformation?
    The goal is to provide faster and more reliable hybrid cloud and managed IT services to its customers in New Zealand.

    How is Spark NZ addressing the growing demand for quick and reliable connectivity?
    Spark NZ is addressing this demand by modernizing its cloud management platform and integrating new streamlined and automated capabilities.

    What are the benefits of Spark NZ’s partnership with HPE?
    The partnership enables Spark NZ to serve its customers more effectively with improved connectivity, advanced scalable AI solutions, and heightened control, agility, and security. It also positions Spark NZ to continue delivering a seamless, user-friendly experience while unlocking enhanced efficiency, tangible business outcomes, and new potential capabilities.

  • Netcracker Boosts AIS’s Digital Transformation with Major Cloud Deployment & Revenue Management Upgrade

    Netcracker Boosts AIS’s Digital Transformation with Major Cloud Deployment & Revenue Management Upgrade

    Netcracker Technology recently completed a significant cloud-native revenue management upgrade for Advanced Info Service (AIS), establishing one of the most substantial cloud deployments in Thailand and the wider Asia-Pacific region. This update signifies a critical progression in AIS’s digital transformation strategy, as the telecom operator enhances its converged mobile and broadband services for its customer base of over 45 million.

    AIS Adopts Netcracker’s Revenue Management Platform

    AIS transitioned to Netcracker’s Cloud-Native Revenue Management platform, a component of the Netcracker Digital BSS suite, to better cater to both B2C and B2B quad-play users. The platform can facilitate flexible subscription billing on monthly, quarterly, and yearly intervals, bolstering customer preference and streamlining billing processes.

    Netcracker has indicated that the launch provides significant operational and commercial advantages, such as increased scalability, cost-effectiveness, and an expedited time-to-market for novel offerings. These features are predicted to bolster AIS’s expanding 5G aspirations, especially in the realms of enterprise 5G and IoT services, as AIS gears up for future market growth.

    Words from the Chief Information Officer and Chief Technology Officer

    AIS’s Chief Information Officer, Bharat Alva, announced that the successful full-circle delivery of the new cloud-native revenue management platform within strict timeframes has already demonstrated its stability and scalability by supporting significant launches and events, such as the most recent iPhone release, without interruption. As AIS continues to transfer customers to this new platform, it plans to capitalize on its momentum with Netcracker by introducing more features and improvements in the immediate future.

    Netcracker’s Chief Technology Officer, Bob Titus, expressed appreciation for their longstanding partnership with AIS, commending them as a genuinely advanced telecommunications operator in a region recognized for numerous innovations. He stated that this launch is the best endorsement of how their customers continue to benefit from their sustained investment in cloud and AI technologies.

    Questions & Answers

    What does the cloud-native revenue management platform do for AIS?
    The platform allows AIS to offer its customers flexible subscription billing on a monthly, quarterly, and yearly basis, enhancing customer choice and making the billing process more efficient.

    What are the benefits of this new deployment for AIS?
    The deployment offers several operational and commercial benefits, including increased scalability, cost optimization, and the ability to bring new offerings to the market at a faster pace.

    How will this upgrade support AIS’s future growth?
    The capabilities provided by this upgrade are expected to support AIS’s growing ambitions in enterprise 5G and IoT services, assisting the company in its preparations for future market expansion.

  • Microsoft Commits $17.5B to Boost India’s AI and Cloud Infrastructure: A Game-changer for Asia’s Tech Landscape

    Microsoft Commits $17.5B to Boost India’s AI and Cloud Infrastructure: A Game-changer for Asia’s Tech Landscape

    Microsoft has pledged to invest a staggering USD 17.5 billion in India’s cloud and artificial intelligence (AI) infrastructure, which is its most significant financial commitment in Asia thus far. The investment, scheduled across four years from 2026 to 2029, plans to boost hyperscale cloud capacity, extend data centers, support AI adoption, and introduce sovereign cloud solutions for industries regulated by the government.

    CEO Visit and Plans

    This landmark investment was unveiled during Satya Nadella’s visit to New Delhi, the CEO of Microsoft. Indian Prime Minister Narendra Modi, who met with Nadella, lauded the initiative as a powerful endorsement of India’s technology ecosystem and its proficient workforce.

    Microsoft aims to establish a new cloud region, called India South Central, in Hyderabad. The expected launch date is in mid-2026. Additionally, the tech giant plans to broaden its operations in Chennai, Hyderabad, and Pune. Microsoft also intends to provide sovereign public cloud and sovereign private cloud solutions to support secure, locally hosted workloads for enterprises and government institutions.

    Investment in Skills and Training

    Another part of Microsoft’s ambitious plan is to train 20 million individuals in AI and digital skills by 2030. This project will involve collaboration with educational institutions, startups, and government programs, aiming to cultivate a workforce ready for the future. The company also plans to integrate AI into public platforms, such as e-Shram and the National Career Service (NCS), to deliver predictive analytics, job-matching services, and multilingual access for millions of workers in the informal sector.

    This USD 17.5 billion commitment overshadows Microsoft’s previous announcement in 2025 to invest USD 3 billion to develop cloud and AI infrastructure, new data centers, and workforce skilling over the following two years. Industry experts believe the expanded investment highlights India’s strategic role in the global AI ecosystem and underscores the country’s appeal as a hub for next-generation technology.

    Questions & Answers

    What is the purpose of Microsoft’s investment in India?
    The investment aims to enhance India’s cloud and AI infrastructure, expand data centers, support AI adoption, and introduce sovereign cloud solutions for regulated industries.

    What is meant by ‘sovereign cloud solutions’?
    Sovereign cloud solutions refer to cloud computing services that are hosted within a country’s borders, providing improved security and data sovereignty for enterprises and government institutions.

    How will Microsoft’s investment impact India’s workforce?
    Microsoft plans to train 20 million people in AI and digital skills by 2030, preparing them for the future job market. They will also integrate AI into public platforms to provide job-matching services and multilingual access for millions of workers in the informal sector.

  • SK Telecom and SK AX Join Forces with AWS: Aiming for Rapid Expansion in Korea’s AI Cloud Market

    SK Telecom and SK AX Join Forces with AWS: Aiming for Rapid Expansion in Korea’s AI Cloud Market

    SK Telecom (SKT) and SK AX have entered into a Strategic Collaboration Agreement (SCA) with Amazon Web Services (AWS) to stimulate a significant expansion in Korea’s AI cloud sector. This partnership will bolster the rapid development of AI infrastructure, cloud migration, and industry-specific service innovation.

    Strategic Agreement to Boost AI Cloud Services

    SKT plans to merge its telecommunications and AI technologies with SK AX’s specialized AI development skills and AWS’s international cloud infrastructure. The intention is to offer unique AI cloud services that facilitate the swift uptake of sophisticated AI tasks within the Korean market.

    A recent development saw AWS investing a staggering USD 8.3 billion in India’s cloud expansion. Now, SKT and SK AX will collectively work on developing personalized AI solutions for critical industries such as finance, gaming, the public sector, manufacturing, and startups. Their aim will be to ensure smooth transitions from preliminary AI projects to extensive operational environments, with a focus on delivering tangible business results.

    At the heart of the agreement is the development of a hybrid AI cloud model. SKT will amalgamate AWS’s international infrastructure with its own AI compute resources, including GPUs, to cater to industries with stringent data protection needs. This strategy will allow sensitive data to stay on-site while scaling workloads via AWS, guaranteeing a compliant, secure, and reliable AI service delivery.

    Building AI Cloud Hub & Enhancing Security

    The collaboration will also trigger the K-AI Alliance to construct an AI Cloud Hub that integrates infrastructure, services, and business channels. The endeavor will aim to generate industry-specific innovation models and expand AI adoption across Korea.

    In addition, SKT is planning to create cloud AI security standards and launch a new assessment framework rooted in its AI Governance Portal. This will enable customers to concentrate on developing AI services in a safe and effective manner. SK AX will develop an industrial AI cloud stack that mirrors unique data structures, regulatory needs, and operational models across diverse sectors, ensuring its practical applicability.

    Introduction of AI FinOps Solution

    The trio will introduce an AI FinOps solution that examines AWS usage patterns, optimizes cost structures, and enhances the total cost of ownership through constant monitoring and ongoing efficiency improvements. This solution is expected to aid businesses in streamlining their spending as AI workloads expand.

    In the coming five years, SKT and SK AX intend to offer stable access to AWS cloud infrastructure and AI services. At the same time, they plan to refine their cloud management skills to strengthen their position as managed service providers.

    Questions & Answers

    What is the focus of the Strategic Collaboration Agreement (SCA) between SK Telecom (SKT), SK AX, and Amazon Web Services (AWS)?
    The SCA focuses on driving large-scale expansion into Korea’s AI cloud market through AI infrastructure development, cloud migration, and service innovation.

    What is the role of the K-AI Alliance in this collaboration?
    The partnership will activate the K-AI Alliance to build an AI Cloud Hub, aiming to unify infrastructure, services, and business channels, fostering industry-specific innovation and broadening AI adoption in Korea.

    What is the proposed AI FinOps solution?
    The AI FinOps solution will analyze AWS usage patterns, optimize cost structures, and improve the total cost of ownership through real-time monitoring and continuous efficiency enhancements, aiding businesses in managing spending as AI workloads scale.

  • Google Cloud Boosts Asia Pacific Connectivity with TalayLink Subsea Cable and New Hubs in Australia and Thailand

    Google Cloud Boosts Asia Pacific Connectivity with TalayLink Subsea Cable and New Hubs in Australia and Thailand

    Google Cloud has unveiled TalayLink, an innovative subsea cable system that connects Australia and Thailand. This system represents a significant move towards bolstering digital infrastructure and network resilience throughout the Asia Pacific region.

    Strengthening Regional Network Resilience

    TalayLink is as an extension of the interlink cable previously introduced under the Australia Connect initiative last year. The cable system is designed to follow a diverse route through the Indian Ocean, positioned west of the heavily trafficked Sunda Strait. This strategic routing will not only provide Thailand with a new, resilient international gateway but will also enhance the integration of Google’s global network.

    Bikash Koley, Vice President of Google Global Infrastructure at Google Cloud, explains that TalayLink is named after the Thai word for sea or ocean, ‘talay’. The new subsea cable path will establish a more diverse linkage to Thailand through the Indian Ocean, west of the Sunda Strait. This route will contribute to further integrating future data centers and cloud regions in Thailand into Google’s global network.

    Future-Proof Connectivity Hubs

    Google has also declared plans to establish new connectivity hubs in Mandurah, Western Australia, and South Thailand, in its recent announcement. These hubs aim to secure future regional connectivity and support advanced digital and AI services by facilitating cable switching, content caching, and colocation capabilities. The Mandurah hub will diversify Western Australia’s landing points beyond Perth, while the South Thailand hub will take advantage of existing infrastructure in an essential subsea crossroads.

    Pratthana Leelapanang, Chief Executive Officer of AIS, commends the strategic partnership with Google in supporting the connectivity hub in Southern Thailand. The collaboration of Google’s diverse submarine cable path and AIS’s high-reliability colocation capabilities will enhance the region’s digital infrastructure and support the country’s AI strategy.

    Preeyaporn Tangpaosak, President of ALT Telecom, also expressed enthusiasm about the International Gateway Company (IGC), a subsidiary of ALT Telecom PLC, being a crucial Google partner in landing a new submarine cable in Thailand. This new piece of digital infrastructure is pivotal in accelerating Thailand’s ambitious digital economy development strategy.

    National Importance of Deployments

    The significance of these implementations for the nation’s long-term competitiveness is underscored by Thailand’s Board of Investment (BOI). Narit Therdsteerasukdi, Secretary General of the Thailand Board of Investment (BOI), highlights the role of the TalayLink cable as a key piece of digital infrastructure. It enhances Thailand’s connectivity and resilience and, in conjunction with Google’s upcoming Google Cloud region and data center in Thailand, will significantly expand regional network and computing capacity. These forward-looking investments position Thailand as a critical digital gateway for next-generation cloud and AI innovation in Southeast Asia.

    Upon completion, the TalayLink and new connectivity hubs will boost network resilience across Australia, Africa, and Southeast Asia. Coupled with previously announced hubs in the Maldives and Christmas Island, the new system will enhance onward connectivity across the Indian Ocean and the Middle East.

    Questions & Answers

    What is the TalayLink subsea cable system?
    TalayLink is an innovative subsea cable system developed by Google Cloud that connects Australia and Thailand, strengthening digital infrastructure and network resilience in the Asia Pacific region.

    How will the new connectivity hubs in Mandurah and South Thailand function?
    These hubs aim to enhance regional connectivity and support advanced digital and AI services. They will facilitate functions such as cable switching, content caching, and colocation capabilities.

    What is the significance of the TalayLink cable to Thailand?
    The TalayLink cable serves as a pivotal piece of digital infrastructure, enhancing Thailand’s connectivity and resilience. It will significantly expand regional network and computing capacity while positioning Thailand as a critical digital gateway for next-generation cloud and AI innovation in Southeast Asia.

  • Thailand Ignites Digital Economy: Unveils $3.1B Investment in Data Center Boom & Cloud Revolution

    Thailand Ignites Digital Economy: Unveils $3.1B Investment in Data Center Boom & Cloud Revolution

    Thailand is propelling its efforts to establish itself as a premier hub for digital infrastructure in Southeast Asia. This move follows the Board of Investment (BOI) granting approval for four new data center projects valued at THB 100 billion (USD 3.1 billion). The country is gearing up to more fiercely compete with Singapore and Malaysia, as the demand for artificial intelligence (AI) and cloud services is growing across the region.

    Details on New Projects

    The BOI has confirmed that two of the approved projects are hyperscale facilities designed to support AI workloads. NextGen Data Center and Cloud Services, a subsidiary of DAMAC Digital based in Dubai, plans to construct an 84-MW hyperscale data center in the Navanakorn Industrial Estate in Pathum Thani Province. This project is expected to require an investment of THB 26.7 billion (USD 826.42 million).

    Meanwhile, Zenith Data Center and Cloud Services, a local firm, will dedicate THB 54.9 billion (USD 1.7 billion) towards developing a 200-MW hyperscale facility in the same location.

    Telehouse (Thailand), which is a division of Japan’s KDDI Corporation, has set plans in motion to build a 12-MW data center adjacent to its existing facility in the Huai Khwang District of Bangkok. This expansion will be funded by an investment of THB 7.55 billion (USD 233.64 million).

    Lastly, Vistas Technology, a subsidiary of ZDATA Technologies based in China, will invest THB 9.9 billion (USD 306.39 million) to construct an 80-MW facility in the Amata City Chonburi Industrial Estate. This will mark the company’s second project to receive approval from the BOI.

    Thailand’s Digital Infrastructure Strategy

    Narit Therdsteerasukdi, the Chairman of the BOI, indicated that the approval of these projects underscores Thailand’s strategy to draw hyperscale operators and augment its world-class digital infrastructure. He stated, “The kingdom is actively positioning itself as a key Southeast Asian hub for hyperscale data centers. These approvals demonstrate our commitment to facilitating world-class digital infrastructure investment.”

    In addition to these approvals, the BOI has also issued six licenses to recommence data center projects that had previously stalled, which are collectively valued at USD 9.2 billion. The agency’s goal is to resolve delays associated with power availability, access to industrial land, and the processing of visas or work permits. Therdsteerasukdi affirmed that this action would bolster investor confidence and promote job creation and economic growth.

    Context and Outlook

    Thailand has been observing a surge in data center investment since 2024, with companies such as AWS, Google, Microsoft, and ByteDance announcing substantial commitments. During the first half of 2025 alone, the sector attracted a total of THB 521.2 billion (USD 16.13 billion) in approved investments spanning 28 different projects.

    Officials project that this latest development will significantly increase Thailand’s data center capacity. It is expected to sustain the rising domestic and regional demand for AI and cloud services, and strengthen the nation’s stand in Southeast Asia’s rapidly expanding digital economy.

    Questions & Answers

    What is the total value of the four new data center projects in Thailand?
    The total value of the four new data center projects in Thailand is THB 100 billion (USD 3.1 billion).

    Who are some of the major companies investing in data centers in Thailand?
    Some of the major companies investing in data centers in Thailand include NextGen Data Center and Cloud Services, Zenith Data Center and Cloud Services, Telehouse (Thailand), and Vistas Technology.

    What impact will these projects have on Thailand’s position in the digital economy of Southeast Asia?
    These projects will bolster Thailand’s position in the digital economy of Southeast Asia by increasing the country’s data center capacity and meeting the growing regional demand for cloud and AI services.

  • Korea Secures $9 Billion in Cloud and AI Investments from Global Tech Giants at APEC Summit

    Korea Secures $9 Billion in Cloud and AI Investments from Global Tech Giants at APEC Summit

    During the APEC Global Investment Partnership event, which was held in conjunction with the APEC CEO Summit in Gyeongju, an announcement was made that underscores the determination of Seoul to lure high-value investment into the areas of digital infrastructure and advanced manufacturing. This is part of Seoul’s drive to expedite its aspirations in the field of artificial intelligence (AI).

    Investments in South Korean Digital Infrastructure

    Matt Garman, the CEO of Amazon Web Services (AWS), disclosed a plan to invest $5 billion by 2031 in order to expand the company’s cloud data centers and enhance its AI competencies in South Korea. He pointed out that South Korea is swiftly becoming a hub of AI innovation in Asia, and the continuous investments by AWS reveal their faith in South Korea’s technological ecosystem. He also believes that these investments will bolster South Korea’s place in the global AI economy.

    President Lee Jae Myung of South Korea, who met with Garman during the event, expressed his approval of AWS’s investment, deeming it a crucial aspect of Seoul’s AI strategy. His endorsement comes on the heels of AWS’s announcement of their $4 billion AI data center project in Ulsan earlier this year. President Lee is confident that this collaboration with AWS will stimulate Korea’s AI ecosystem and solidify their mutual path to prosperity.

    Investments from Other Multinational Corporations

    Additionally, six other multinational companies, namely Renault, Amkor Technology, Corning, Air Liquide, Siemens Healthineers, and Umicore, also communicated their new investment commitments. Renault Korea is set to transform existing production lines for the manufacture of electric vehicles, designating Korea as one of its five global strategic hubs. Siemens Healthineers has plans to construct a new 9,917-square-meter facility in Pohang for the production of components for cardiovascular ultrasound systems. Amkor Technology is preparing to extend its semiconductor packaging operations, while Umicore has intentions to build a cathode materials plant to cater to Korea’s rapidly expanding battery supply chain.

    As per the Ministry of Trade, Industry, and Energy of Korea, approximately $660 million of the declared amount is to be immediately registered as foreign direct investment.

    Korea’s Leadership in AI Development

    President Lee, during his keynote speech at the APEC CEO Summit, expressed Korea’s intention to propose an AI Initiative at the upcoming APEC leaders’ meeting, advocating for inclusive and cooperative AI development in the Asia-Pacific region. He envisions a future where AI is accessible to all, hopeful that this vision will become the new standard for APEC. This places Korea in a leadership position in the Asia-Pacific region in terms of digital transformation and ethical AI governance.

    The APEC CEO Summit, organized by the Korea Chamber of Commerce and Industry (KCCI), saw a record turnout of 1,700 business and political leaders, the largest in the summit’s 30-year history. The summit boasted the attendance of top executives and heads of state, including U.S. President Donald Trump, NVIDIA CEO, Jensen Huang, and several Asia-Pacific leaders.

    The summit was represented by the chairmen of Korea’s biggest conglomerates, including Samsung, Hyundai, LG, SK Group, and POSCO, reinforcing the country’s pivotal role in shaping the region’s technological future. The summit’s sessions over the three days centered around AI, digital currencies, supply chain resilience, green transition, and economic cooperation.

    Questions & Answers

    What was the primary focus of the APEC Global Investment Partnership event?
    The event was centered around Seoul’s efforts to attract high-value investments in digital infrastructure and advanced manufacturing to accelerate its AI ambitions.

    What is AWS’s planned investment in South Korea?
    AWS announced a plan to invest $5 billion by 2031 to expand its cloud data centers and boost its AI capabilities in South Korea.

    How are other multinational corporations contributing to South Korea’s AI strategy?
    Six multinational corporations have committed to new investments in South Korea. These include Renault’s conversion of production lines to electric vehicle manufacturing, Siemens Healthineers’ construction of a new facility for cardiovascular ultrasound systems, and Amkor Technology’s expansion of semiconductor packaging operations.

  • Amazon’s Q3 Profit Skyrockets, Thanks to Cloud Services and AI-Driven Sales Boost

    Amazon’s Q3 Profit Skyrockets, Thanks to Cloud Services and AI-Driven Sales Boost

    Amazon recently announced robust profit growth for the third quarter, showing sustained double-digit growth due to advancements across the company.

    Strong Sales and Revenue Growth

    The net income for the quarter ending on September 30 experienced a 13% increase, reaching a total of $180.2 billion. Sales in North America grew by 11%, while international sales saw a 14% rise. AWS sales also experienced substantial growth, increasing by 20%.

    According to CEO Andy Jassy, Amazon’s sustained momentum and growth during this quarter can be attributed to the meaningful improvements brought about by AI across all aspects of the business. “AWS is growing at a rate we haven’t seen since 2022. We are witnessing strong demand in AI and core infrastructure, and our focus has been on boosting capacity,” Jassy remarked.

    Key Business Developments

    The most notable achievement for Amazon this quarter was its ability to sustain the high momentum from the last reporting period. This was driven by broad developments across all business areas, which included a 16.3% increase in service revenue and a 9.6% rise in product sales.

    Despite a $2.5 billion legal settlement with the FTC and severance fees related to layoffs, net income increased by 38.2% to $21.2 billion. However, these extra costs resulted in flat operating income growth. Excluding these costs, operating income would have seen a 24.6% rise.

    The 30.2% growth in technology and infrastructure costs signified Amazon’s increased investment in areas like fulfillment and technology, despite its current success. While these investments are critical to foster new growth avenues and maintain competitive sharpness, there is a need for increased efficiency, which is being partially achieved through the elimination of certain roles and corporate hierarchy streamlining.

    Robust Retail Business

    Amazon’s retail business continues to exhibit strong growth, fueled by the ongoing expansion of fast delivery services into more rural areas and the competitive pricing and convenience of household essentials.

    Considering the broader Amazon ecosystem, the increasing sophistication of seller services is helping drive fee revenue and push up advertising sales, while also ensuring one of the widest possible selections for shoppers.

    For the fourth quarter, the company projects net sales to grow between 10% and 13%. Operating income is expected to range from $21.0 billion to $26.0 billion, compared to the $21.2 billion from the previous year.

    As Amazon looks to the future, potential for growth remains. The company is well-positioned to leverage AI more effectively to personalize customer journeys and decision making, and to drive efficiency savings in operations and logistics.

    Questions & Answers

    What led to Amazon’s growth in the third quarter?
    Amazon’s growth in the third quarter was primarily due to improvements across the business, driven by AI and broad advances in all business areas.

    What challenges did Amazon face in its operations this quarter?
    Operational challenges for Amazon this quarter included a $2.5 billion legal settlement with the FTC and severance fees related to layoffs, which affected operating income growth.

    What are Amazon’s plans and expectations for the fourth quarter?
    Amazon expects net sales to grow between 10% and 13% in the fourth quarter, with operating income estimated to be between $21.0 billion and $26.0 billion.

  • Global Internet Disruption: Amazon’s AWS Resumes After Massive Outage

    Global Internet Disruption: Amazon’s AWS Resumes After Massive Outage

    Amazon’s cloud service, Amazon Web Services (AWS), resumed regular operations on Monday afternoon after an internet outage disrupted thousands of sites worldwide, affecting popular applications like Snapchat and Reddit. AWS, which provides application hosting and computing processes for businesses globally, suffered an interruption that impacted workers and halted regular activities such as online payments and ticket changes. Complaints of persistent difficulties with services like digital wallet Venmo and video-calling platform Zoom were reported on Monday afternoon.

    Backlog of Messages and Previous Disruptions

    Despite the resumption of services, Amazon noted that some AWS services had a backlog of messages that would require additional time to process. This isn’t the first time AWS has been implicated in a significant internet collapse. The northern Virginia cluster of AWS, known as US-EAST-1, has contributed to major internet meltdowns at least three times in the past five years.

    Amazon did not provide a detailed explanation as to why this specific data centre continues to be affected. The recent problems were traced back to the Domain Name System (DNS), which averted applications from locating the correct address for AWS’s DynamoDB API, a cloud database essential for storing user information and other crucial data.

    Root Cause and Effects

    Earlier, AWS attributed the root cause of the outage to an underlying subsystem responsible for monitoring the health of its network load balancers, which help distribute traffic across multiple servers. The issue, according to AWS, originated within the EC2 internal network, Amazon’s Elastic Compute Cloud service, which offers on-demand cloud capacity within AWS. The issue was resolved around 3 pm PT (2200 GMT), although some services continued to have a backlog of messages to process.

    Ken Birman, a computer science professor at Cornell University, emphasized the need for software developers to enhance fault tolerance, suggesting that AWS provides tools that developers can utilize to safeguard themselves in the event of an issue at one of its data centres.

    AWS and Previous Outages

    As the world’s largest cloud provider, AWS offers computing power, data storage, and other digital services to companies, governments, and individuals. Disruptions to its servers can result in outages across websites and platforms that depend on its cloud infrastructure. According to AWS, Monday’s outage started at its US-EAST-1 location, AWS’s oldest and largest site for web services, which previously suffered outages in 2021 and 2020.

    Interconnected and Fragile Infrastructures

    The problem underscores the interconnectivity of digital services and their reliance on a small number of global cloud providers. A single glitch can significantly disrupt businesses and everyday life.

    The outage affected a vast range of companies across sectors. Apps like Reddit, Roblox, Snapchat, and Duolingo were all impacted. Other services such as Perplexity, a startup specializing in artificial intelligence, cryptocurrency exchange Coinbase, and trading app Robinhood also experienced disruptions attributed to AWS. Amazon’s own services, including its shopping website, Prime Video, and Alexa, were likewise affected.

    Questions & Answers

    What caused the AWS outage?
    The outage was linked to an underlying subsystem that monitors the health of AWS’s network load balancers. It originated from within the EC2 internal network, Amazon’s Elastic Compute Cloud service.

    What were the effects of the AWS outage?
    The outage disrupted thousands of sites and applications globally, including popular apps like Snapchat and Reddit. It also halted regular activities such as online payments and ticket changes.

    How often has the AWS northern Virginia cluster experienced major internet disruptions?
    The northern Virginia cluster of AWS, known as US-EAST-1, has contributed to major internet meltdowns at least three times in the past five years.

  • Global Amazon Web Services Outage Disrupts Thousands Of Websites, Reveals Vulnerability In Online Infrastructure

    Global Amazon Web Services Outage Disrupts Thousands Of Websites, Reveals Vulnerability In Online Infrastructure

    Amazon’s cloud computing division AWS resumed regular operations on Monday after an extensive internet outage that disrupted thousands of websites globally, including popular apps such as Snapchat and Reddit. However, Amazon acknowledged that certain AWS services were dealing with a backlog of messages that needed several hours to process.

    AWS provides application hosting and processing power for corporations across the globe. This disruption caused employees from London to Tokyo to be cut off from their work and hindered others from carrying out routine tasks, such as processing digital payments or modifying airline tickets. Users reported persistent difficulties using services like the digital wallet app Venmo and the video conferencing platform Zoom on Monday afternoon.

    This incident represents the most significant internet disruption since last year’s CrowdStrike failure, which crippled technology systems in hospitals, banks, and airports, emphasizing the susceptibility of globally interconnected technologies. Intriguingly, this is at least the third time in five years that AWS’s northern Virginia cluster, known as US-EAST-1, has been implicated in a major internet meltdown.

    Amazon did not provide a detailed explanation as to why this specific data center is consistently affected. The problem originated from the Domain Name System (DNS), which prevents applications from locating the correct address for AWS’s DynamoDB API, a cloud database utilized for storing user information and other vital data.

    Root Cause: Network Health Monitor

    AWS attributed the outage to a subsystem that oversees the health of its network load balancers, which distribute traffic across various servers. According to AWS, the issue originated within the “EC2 internal network,” also known as Amazon’s “Elastic Compute Cloud” service, which offers on-demand cloud capacity within AWS.

    All AWS services were back to normal operations around 3 pm PT (2200 GMT) on Monday, according to Amazon. However, services such as AWS Config, Redshift, and Connect continue to handle a backlog of messages that will take several more hours to process.

    Ken Birman, a computer science professor at Cornell University, emphasized the need for software developers to improve fault tolerance. AWS provides tools for developers to safeguard themselves against problems at any of its data centers, and developers can also establish backups with other cloud providers.

    Previous Outages at the Same AWS Location

    AWS is the world’s largest cloud provider, offering computing power, data storage, and other digital services to companies, governments, and individuals. It is followed by Microsoft’s Azure and Alphabet’s Google Cloud. Any disruption to its servers can lead to outages across websites and platforms—from food delivery apps to gaming platforms and airline systems—that rely on its cloud structure.

    The outage on Monday originated from AWS’s US-EAST-1 location, its oldest and largest for web services, which had experienced outages in 2021 and 2020.

    According to the AWS website, the US-EAST-1 site is often the default region for many AWS services.

    “Fragile Infrastructures”

    This issue underlines how interconnected everyday digital services have become and how dependent they are on a small number of global cloud providers. One failure can considerably disrupt business operations and daily life, experts say.

    In the United Kingdom, Lloyd Bank, Bank of Scotland, and telecom service providers Vodafone and BT were all affected, as was the UK tax, payments, and customs authority HMRC’s website.

    Ookla, owner of Downdetector, reported that over 4 million users experienced issues due to the incident.

    “h2>Impact on Apps

    At least a thousand companies were affected by the outage, according to Ookla. Apps such as Reddit, Roblox, Snapchat, and Duolingo were all disrupted.

    Artificial intelligence startup Perplexity, cryptocurrency exchange Coinbase, and trading app Robinhood all experienced platform disruptions and attributed them to AWS.

    Amazon’s own services, including its shopping website, Prime Video, and Alexa, were also affected. Gaming platforms such as Fortnite, owned by Epic Games, Clash Royale, and Clash of Clans were among those affected. Uber competitor Lyft was also disrupted in the United States.

    Questions & Answers

    What was the cause of the AWS outage?
    The problem originated from the Domain Name System (DNS), which prevents applications from finding the correct address for AWS’s DynamoDB API, a cloud database utilized for storing user information and other vital data.

    How did the outage affect global businesses?
    The outage disrupted services for companies worldwide, causing employees to be cut off from their work and hindering others from carrying out routine tasks. This incident impacted a broad range of services—from food delivery apps to gaming platforms and airline systems—that rely on AWS’s cloud infrastructure.

    Which AWS location experienced the outage?
    The outage originated from AWS’s US-EAST-1 location, its oldest and largest for web services.

  • Amazon Launches New AWS Cloud Region in Asia Pacific, Boosting New Zealand’s Tech Landscape

    Amazon Launches New AWS Cloud Region in Asia Pacific, Boosting New Zealand’s Tech Landscape

    Amazon’s announcement of the AWS Asia Pacific (New Zealand) Region marks a significant expansion of its global cloud framework, bringing new opportunities to developers, startups, enterprises, and nonprofits across various sectors including retail, education, and government. With the launch of this new location, users can now enjoy greater flexibility to run applications and engage their audiences through data centers firmly rooted in New Zealand.

    A Long-Term Investment in New Zealand’s Digital Future

    In a move that signals its long-standing commitment to New Zealand, Amazon plans to invest over NZD 7.5 billion into the construction, connection, operation, and upkeep of its data centers. Initial plans for the AWS Asia Pacific (New Zealand) Region include three Availability Zones, adding to a robust global tally of 120 Availability Zones across 38 regions, revealing a cloud network so extensive that even a flock of sheep might get lost in it — and that’s quite a feat in New Zealand!

    Enhancing AWS’s Role in Cloud Computing

    In addition to the new Kiwi expansion, AWS has ambitious plans to introduce ten more Availability Zones and establish three additional regions in Chile, Saudi Arabia, and its forthcoming European Sovereign Cloud. Designed with sovereignty at its core, the New Zealand region will provide secure and compliant cloud infrastructure, allowing customers to access a comprehensive suite of AWS services, including analytics, computing, content delivery, databases, generative AI (GenAI), machine learning (ML), networking, and storage.

    Empowering the Next Generation of Cloud Professionals

    To address the growing demand for cloud technology throughout the Asia Pacific, Amazon is also focusing on digital skills development, launching initiatives such as AWS Academy, AWS Educate, and AWS Skill Builder. Under a memorandum of understanding with the New Zealand government, AWS has pledged to train 100,000 individuals in cloud competencies, with over 50,000 already equipped with these essential skills. Moreover, AWS intends to hire and develop additional local talent to support this new region, further underscoring its dedication to New Zealand’s digital evolution and economic progress.

    Questions & Answers

    What are the key features of the AWS Asia Pacific (New Zealand) Region?
    The new AWS region will initially host three Availability Zones and will provide a wide range of services including analytics, computing, generative AI, and machine learning, tailored to secure and compliant cloud infrastructure.

    How much is Amazon investing in New Zealand’s cloud infrastructure?
    Amazon plans to invest over NZD 7.5 billion, focusing on the construction and operation of its data centers, reflecting a long-term commitment to the region.

    What initiatives is Amazon implementing to develop local cloud skills?
    Amazon has committed to training 100,000 individuals in cloud technology through programs like AWS Academy, with over 50,000 already trained, demonstrating a serious dedication to enhancing local expertise in the tech sector.

  • Alibaba Leverages Ai To Expand Cloud Business, Despite Falling Short Of Revenue Projections

    Alibaba Leverages Ai To Expand Cloud Business, Despite Falling Short Of Revenue Projections

    Alibaba, the Chinese multinational, has highlighted the significance of artificial intelligence (AI) in its plans to broaden its cloud computing business. This comes as the company experienced robust quarterly development in the sector, although its broader operations fell short of revenue projections.

    The Market Reaction

    Alibaba’s shares listed in the U.S. rose by 8% at the opening of the New York market on Friday after the results were announced.

    The revenue for Alibaba’s cloud division experienced a surge of 26% to a total of 33.40 billion yuan (equivalent to US$4.67 billion). This significant increase outpaced the anticipated rise of 18.4%. Yet, the weaker-than-expected progress in its e-commerce business overshadowed this achievement, with the total revenue falling short of estimates by 2%.

    Alibaba’s Position in AI

    Alibaba has emerged as one of the most competitive players in China’s AI sector, frequently introducing updates.

    In the past year, the company has invested over 100 billion yuan in AI infrastructure and product research and development, according to Group CEO, Eddie Wu.

    Wu stated that their investments in AI are beginning to bear fruit. He sees a clear trajectory for AI to power Alibaba’s robust growth in the future.

    Overall Performance and Revenue

    The overall revenue for the company for the quarter ending on June 30 was 247.65 billion yuan. This fell short of the average estimate of 252.92 billion yuan as calculated by LSEG.

    Alibaba reported its revenue from its China E-commerce Group for the first time, which includes platforms like Taobao and Tmall, its new instant commerce business, a food delivery app called Ele.me, and a travel agency called Fliggy. The group reported a revenue growth of 10%.

    On the other hand, Alibaba’s operational income saw a decrease of 3% year on year. The adjusted earnings before interest, tax and amortization dropped 14%, primarily due to investments in the instant commerce sector.

    Response from Rivals and Analysts

    The business rivals of Alibaba, PDD Holdings and Meituan, which are currently vying for market share in the instant retail space, issued warnings that rising investments could impact profits in the upcoming quarters.

    Analysts and executives from both companies have noted that competition has been escalating over the period.

    Analyst Angelo Zino from CFRA commented that while the shift towards quick commerce and AI investments had brought about meaningful operational changes, profitability was affected by growth initiatives such as user acquisition and technology infrastructure expenditure.

    Future Plans for Alibaba

    Alibaba plans to utilize its quick commerce business to broaden its overall e-commerce consumer base. The company aims to target a 30 trillion yuan addressable market. Jiang Fan, the CEO at Alibaba’s e-commerce business group, has projected that the quick commerce segment could contribute 1 trillion yuan in yearly incremental gross merchandise volume over the following three years.

    The revenue from international commerce saw a rise of 19%, propelled by expansion in crucial markets like Europe and the Middle East.

    Alibaba also announced its repurchase of shares in its logistics unit Cainiao from Fosun International. The transaction amounted to $349.8 million.

    Questions & Answers

    What is Alibaba’s recent investment in AI?
    Alibaba has invested over 100 billion yuan in AI infrastructure and product research and development in the past year.

    What is the expected contribution of the quick commerce segment to Alibaba’s revenues?
    The quick commerce segment is projected to contribute 1 trillion yuan in annualized incremental gross merchandise volume over the next three years.

    What was Alibaba’s recent significant transaction?
    Alibaba repurchased shares in its logistics unit Cainiao from Fosun International, amounting to $349.8 million.

  • NTT SmartConnect and Megaport Unveil Innovative Cloud and IX Services in Japan

    NTT SmartConnect and Megaport Unveil Innovative Cloud and IX Services in Japan

    NTT SmartConnect Corporation, operating from Osaka, is poised to enhance Japan’s digital landscape with its latest venture. Under the leadership of President and CEO Kento Miyaoku, the company has announced a strategic partnership with Megaport Japan K.K., a renowned global network service provider based in Brisbane, Australia, and led by CEO Michael Reid. This collaboration will culminate in the opening of a new connection point that promises to transform the way businesses in Japan access cloud services.

    A Milestone in Connectivity

    Situated within the Sonezaki Data Center in the heart of Osaka, this connection point is set to launch on Wednesday, July 23, 2025. With Megaport’s multi-cloud connectivity service, businesses will soon find themselves at the intersection of innovation and efficiency. The service boasts connections to over 975 data centers and supports more than 410 service providers, including industry heavyweights such as Amazon Web Services (AWS), Microsoft Azure, and Salesforce.

    Clients can look forward to a suite of benefits, including seamless bandwidth adjustments, cost savings, rapid deployment of services, and streamlined connections to diverse cloud solutions. In a world where digital agility is paramount, this development could serve as a much-needed shot in the arm for companies eager to expand their capabilities.

    A New Era with MegaIX

    In addition to its connectivity services, this initiative marks the debut of Megaport’s internet exchange (IX) service, dubbed MegaIX, in Japan—an offering that will now be available from the Sonezaki Data Center.

    NTT SmartConnect’s forward-thinking approach highlights a commitment to not only enhancing customer business efficiency but also supporting global expansion. As Miyaoku noted, this collaboration stands as a testament to their joint vision of pioneering seamless digital connectivity in the Asian market.

    In a move that might remind you of the first time your favorite band released a surprise album, this partnership marks an exciting chapter for Japan’s retail and tech sectors, one that promises to generate a buzz and reshape digital commerce.

    Questions & Answers

    How will the new connection point benefit businesses in Japan?
    The new connection point will provide seamless multi-cloud connectivity, enabling businesses to adjust bandwidth, save costs, deploy services quickly, and connect effectively to major cloud platforms.

    What specific service is Megaport introducing in Japan with this collaboration?
    Megaport is launching its internet exchange service, MegaIX, in Japan, enhancing connectivity options from the Sonezaki Data Center.

    What are NTT SmartConnect’s future plans regarding this partnership?
    NTT SmartConnect aims to continue collaborating with Megaport to improve customer business efficiency and facilitate global expansion opportunities.