• Cloud infrastructure revenue hits $98.8 billion globally
• AI-related cloud growth reaches up to 180 percent
What happened: AI accelerates global cloud services market in Q2 2025
Global spending on cloud infrastructure reached $98.8 billion in Q2 2025. This marks a $20 billion rise from Q2 2024. Public cloud providers saw nearly 27 percent growth year on year. AI-related services grew between 140 and 180 percent in the same period. Synergy Research Group provided this market data. AWS, Microsoft Azure and Google Cloud led the sector. Together, these firms accounted for over two-thirds of total revenue. IaaS and PaaS services contributed most to this expansion.
Hosted private cloud services also grew steadily. Analysts confirmed Q2 marked the third straight quarter of 24 to 25 percent growth. Most demand came from large enterprises running AI applications. GenAI workloads drove much of this spending surge. These results follow a slower 2023 performance across cloud markets. The current rebound signals renewed demand for compute and storage services.
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Why it’s important
AI workloads have become the leading driver of cloud spending. Enterprises now move faster to deploy cloud-based AI models. This shift increases pressure on cloud providers to scale infrastructure. It also prompts changes in enterprise IT strategies and budgets. Many companies are moving away from on-premise systems.
They now favour flexible platforms that support AI development. This realignment suggests deeper digital transformation trends across industries. Rising cloud spend shows continued trust in hyperscale platforms. It also raises infrastructure and sustainability questions globally. Growth in AI cloud services affects data centre planning and energy needs. This trend will likely continue into 2026 as demand for AI rises.
