Alibaba (NYSE:BABA) has announced that it will be bringing its cloud services to the United States.

Alibaba decision to bring its cloud services to the U.S. will be the first time that it has offered them outside of China. It is also planning to expand its services to Europe and Southeast Asia later this year. Prices for the service haven’t been announced, but the company did say that they would be competitive, reports TechCrunch.

Alibaba said that it will start its service by offering it to Chinese businesses with an interest in the U.S. Later in the year, the company plans to open it up to international companies that are interested in it. It said this new expansion was just it “testing the water”, Tech Crunch notes.

The expansion of Alibaba’s cloud services to the U.S. could offer tough competition for Amazon (NASDAQ:AMZN) Web Services. Amazon’s cloud service has a strong grip in the US, but new competitors have been rising up to challenge it, reports Wired.

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