Enterprise spending on cloud infrastructure services skyrocketed to $94 billion in Q1 2025, according to Synergy Research Group, marking a robust $17.5 billion increase over the same period last year—a 23% year-on-year growth that underscores the sector's ongoing momentum.
The surge highlights the transformative impact of Generative AI (GenAI) on the global cloud ecosystem. Synergy estimates that without currency fluctuations, growth would have reached 25%, showing just how resilient and fast-moving the cloud market has become.
"The cloud market has seen a major acceleration over the last six quarters. AI is playing a huge role in this growth story," said John Dinsdale, Chief Analyst at Synergy Research Group.
Since the rise of GenAI tools like ChatGPT, the cloud industry has experienced a dramatic shift. AI-specific cloud services alone grew between 140% and 160% year-on-year, contributing approximately seven percentage points to the market's overall growth rate. As a result, the global cloud infrastructure market has expanded by 52% since the end of 2022.
Leading Providers See Competitive Gains
Amazon Web Services (AWS) retained its leadership position with a 29% share of the global market, followed by Microsoft Azure (22%) and Google Cloud (12%). However, Azure and Google recorded higher percentage growth during the quarter, signaling stronger competition among the top-tier providers.
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The report also spotlighted the rise of Tier 2 cloud players such as CoreWeave, Oracle, Databricks, Snowflake, Cloudflare, and Huawei—all of which posted the fastest growth within their category. CoreWeave, in particular, is nearing entry into the global top 12, thanks to its focus on AI and GPU-based services.
Public Cloud and Regional Growth
Public IaaS (Infrastructure-as-a-Service) and PaaS (Platform-as-a-Service) remained the key drivers of cloud revenue, growing by 24% globally, or 26% when adjusted for constant currency. The dominance of the top three providers was especially notable in public cloud, where they command 68% of market share.
On a regional level, cloud spending growth was widespread. While the United States maintained its position as the world's largest cloud market—posting 24% growth in Q1—countries like Brazil, India, Indonesia, South Korea, Australia, Spain, and Italy outpaced global averages. In Europe, Ireland, Spain, and Italy stood out as high-growth markets despite Germany and the UK leading in overall volume.
AI Signals a New Era for Cloud
The report suggests that Generative AI is not only reshaping the types of services enterprises demand but also accelerating innovation across the entire IT stack. This includes cloud-native software development, data storage, analytics, and compute services.
"Capex numbers are massive, but so are the incremental revenues," Dinsdale added, highlighting how cloud providers are reinvesting aggressively to scale infrastructure for AI-powered workloads.
Despite global economic uncertainties and rising trade tensions, the leading cloud vendors have not revised their shipment or revenue targets downward—reflecting a strong sense of market confidence heading into the remainder of 2025.
