Alibaba Cloud Cuts Deal With Shell China To Reduce Carbon Footprint - Alibaba Gr Holding (NYSE:BABA)

Alibaba Group Holding Limited’s BABA cloud unit collaborated with energy giant Royal Dutch Shell PLC’s SHEL China subsidiary on green, low-carbon digital solutions.
Specifically, Shell’s coolant liquid will help in Alibaba’s data center for testing and exploring commercialization opportunities, SCMP reports.
Meanwhile, Alibaba Cloud will help Shell’s China business to digitalize further.
The companies will also help enterprise clients implement “green, low-carbon digitalization solutions” while exploring electricity trading, green certificate trading, and carbon credit trading.
It marked the first significant deal since Alibaba Chair Zhang personally took over the cloud unit after a 24-hour-long systems crash in the Hong Kong and Macau region in 2022.
China’s President Xi Jinping pledged at the United Nations General Assembly in September 2020 to reach carbon neutrality by 2060.
Alibaba reported third-quarter FY22 revenue growth of 2% year-on-year to $35.92 billion, beating the consensus of $35.76 billion.
Cloud grew by 3% Y/Y to $2.93 billion. Cloud grew 12% Y/Y to $2.99 billion in Q4 FY21 and 10% Y/Y to $1.59 billion in Q1 FY22. Cloud growth first slowed to 4% Y/Y to $2.92 billion in Q2 FY22.
Price Action: BABA shares traded lower by 3.50% at $90.86 premarket on the last check Friday.
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