TITLE: Global Cloud Infrastructure Spending Hits $102.6 Billion, Up 25% in Q3 2025

Global Cloud Infrastructure Spending Surges to $102.6 Billion in Q3 2025

Global spending on cloud infrastructure reached $102.6 billion in the third quarter of 2025, a 25% increase from the same period a year earlier, according to a report from market research firm Omdia.

The growth reflects continued demand for scalable computing resources amid the expansion of artificial intelligence applications and data analytics. Hyperscale cloud providers, including Amazon Web Services, Microsoft Azure and Google Cloud, dominated the market, capturing over 65% of total expenditures.

Omdia's analysis highlights a shift toward hybrid and multi-cloud strategies, with enterprises increasingly investing in edge computing to support real-time processing needs. Public cloud services led the surge, comprising 72% of the total spend, while private cloud deployments grew at a slower 18% rate.

Regional Breakdown and Key Drivers

North America remained the largest market, accounting for 42% of global spending at $43.1 billion, up 28% year-over-year. The region's dominance is attributed to heavy investments by tech giants and a robust ecosystem for AI development.

In Europe, spending totaled $25.4 billion, a 22% increase, driven by regulatory compliance needs under the EU's data sovereignty rules and growing adoption in the financial sector. Asia-Pacific saw the fastest growth at 32%, reaching $24.8 billion, fueled by digital transformation initiatives in China and India.

Key drivers included the proliferation of generative AI models, which require vast computational power, and the ongoing migration of workloads from on-premises systems. Omdia noted that infrastructure as a service (IaaS) spending rose 30%, while platform as a service (PaaS) increased by 24%.

Market Leaders and Competitive Landscape

Amazon Web Services held the top position with a 31% market share, followed by Microsoft at 25% and Google at 12%. Emerging players like Alibaba Cloud and Oracle Cloud gained ground in specific regions, with combined shares exceeding 15%.

The report points to intensifying competition, with providers offering specialized AI accelerators and sustainability-focused services to attract customers. Energy-efficient data centers became a priority, as providers faced pressure to reduce carbon footprints amid global climate goals.

Omdia forecasts that annual global cloud infrastructure spending will exceed $400 billion by the end of 2025, with growth moderating to 20% in 2026 as markets mature.

Challenges and Future Outlook

Despite the boom, challenges persist, including supply chain constraints for semiconductors and rising energy costs. Cybersecurity threats also loom large, with a 15% uptick in cloud-related breaches reported in the quarter.

Analysts at Omdia emphasize the need for standardized interoperability to ease multi-cloud adoption. Looking ahead, the integration of quantum computing prototypes could further accelerate spending, particularly in research-intensive sectors like pharmaceuticals and finance.

The data underscores the cloud sector's resilience, even as economic uncertainties linger globally. Enterprises continue to prioritize digital agility, positioning cloud infrastructure as a cornerstone of long-term strategy.