Chinese e-commerce giant Alibaba is scouting locations for a second European data centre to better compete in the cloud services market dominated by Amazon Web Services.
The first data centre was opened in Frankfurt last November - leading locations for the new data centre include London and somewhere in Sweden, it is reported.
The company currently has 14 data centres and has already announced new ones in Indonesia and Malaysia.
Alibaba held onto 2.6% of the cloud infrastructure services market in Q2, according to reports. The company is narrowing the gap with Google's 5.9% share but falls far behind the 30.3% AWS market share.
JPMorgan analysts Alex Yao and Gokul Hariharan think the division could account for 15% of Alibaba revenues by 2021.