Cloud Infrastructure Spending Hits $102.6 Billion in 3Q25

According to Omdia research, global spending on cloud infrastructure services reached $102.6 billion in 3Q25, representing 25% year-on-year growth. Market momentum remained stable, marking the fifth consecutive quarter in which growth has remained above 20%, highlighting continued strength across the sector.

This performance reflects a significant shift in the technology landscape as enterprise demand for AI moves beyond early experimentation toward scaled production deployment. As this transition accelerates, hyperscalers are increasingly redirecting competition away from the incremental gains in model performance and toward platform-level capabilities that support multi-model deployment and ensure the reliable operation of AI agents in real-world environments. In 3Q25, AWS, Microsoft Azure, and Google Cloud maintained their market rankings from the previous quarter, collectively accounting for 66% of global cloud infrastructure spending. Together, the three hyperscalers delivered 29% year-on-year growth.

AWS’s growth reaccelerated to 20% in the period, marking its strongest performance since 2022. Microsoft Azure and Google Cloud also maintained strong momentum, each delivering a year-on-year increase of more than 35%. As enterprise demand for AI continues to materialize, growth in the cloud market is shifting from early-stage experimentation and pilot projects toward the scaled deployment of enterprise-grade AI applications. Backlog levels among leading cloud providers continued to rise, with AWS, Microsoft, and Google Cloud all reporting further increases in Q3 order backlogs, reinforcing the market’s underlying resilience and healthy demand environment.

Hyperscalers’ AI strategies are evolving from a primary focus on incremental model performance toward more platform-driven and production-ready approaches. Enterprises are no longer evaluating AI platforms solely on model capabilities, but are increasingly evaluating them on their support for multi-model strategies and agent-based applications.

 This shift is accelerating hyperscalers’ move toward platform-level AI capabilities. AWS, Microsoft Azure, and Google Cloud are integrating proprietary foundation models with a growing range of third-party and open-weight models, leveraging managed AI platforms and services such as Amazon Bedrock, Azure AI Foundry, and Vertex AI’s Model Garden to expand support for multi-model adoption.

Amazon Web Services led the global cloud infrastructure market with a 32% share and 20% year-on-year revenue growth. This performance was supported by easing compute supply constraints, alongside incremental demand driven by its partnership with Anthropic. Microsoft Azure remained the world’s second-largest cloud provider in 3Q25, holding a 22% market share and delivering robust 40% year-on-year revenue growth. Google Cloud was the world’s third-largest cloud services provider, delivering strong 36% growth and increasing its market share to 11%.