Cloud Market Annual Revenue Run Rate Topped Half a Trillion Dollars in Q1 as Growth Surge Continues

RENO, NV, April 29, 2026

New data from Synergy Research Group shows that Q1 enterprise spending on cloud infrastructure services jumped by over $35 billion from the first quarter of last year to reach $129 billion, representing an annual revenue run rate of over half a trillion dollars. The most notable feature of the numbers was that the year-on-year growth rate increased for the ninth successive quarter, reaching 35%. That is the highest growth rate seen since the last quarter of 2021, when the market was only 40% of its current size. GenAI continues to drive major changes in cloud market dynamics. Among the major cloud providers, Amazon maintains a strong lead in the market, though Microsoft and Google continue to achieve substantially higher growth rates. Their Q1 worldwide market shares were 28%, 21%, and 14% respectively. Among the tier two cloud providers, those with the highest growth rates include CoreWeave, OpenAI, Oracle, Crusoe, Nebius, Anthropic and ByteDance. Based on cloud infrastructure service revenues, five neocloud companies are now among the top thirty cloud providers. With most of the major cloud providers having now released their earnings data for Q1, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $128.6 billion, with trailing twelve-month revenues reaching $455 billion. Public IaaS and PaaS services account for the bulk of the market, and those grew by 38% in Q1. The leadership of the major cloud providers is even more pronounced in public cloud, where the top three account for 67% of the market. Geographically, the cloud market continues to grow strongly in all regions of the world. When measured in local currencies, the major countries with the strongest growth included India, Indonesia, Ireland, Taiwan, Thailand, and Malaysia, all growing at rates well above the worldwide average. The US remains by far the largest cloud market, with its scale far surpassing the whole APAC region. The US market grew by 37% in Q1. In Europe the largest cloud markets are the UK and Germany, but the big markets with the highest growth rates were Ireland, Norway, and Poland.

“The Q1 market is now fifteen times larger than it was a decade ago and continues to expand at 35% annually. Reaching a half-trillion-dollar run rate underscores the far-reaching impact of cloud computing and AI on the IT landscape,” said John Dinsdale, Chief Analyst at Synergy Research Group. “Our forecasts point to sustained strong growth in the years ahead, with AI continuing to drive usage, unlock new use cases, and boost cloud provider revenues. At the same time, the competitive landscape is evolving, with neoclouds playing an increasingly significant role - already accounting for 5% of the total cloud market and a substantially larger share of AI-focused segments.”