Cloud Market Growth Rate Surges to Well Over 50% per Year; Q3 Revenues Reach $168 Billion

Reno, NV, October 29, 2026 – Synergy Research Group, now part of TechInsights, today announced that Q3 enterprise spending on cloud infrastructure services yet again broke all previous records. The growth rate increased for the twelfth successive quarter, with Q3 spending on cloud services jumping by an unprecedented 55% year over year to reach $168 billion.

Despite the already massive scale of the market, it has taken just eight quarters to double in size. Before the launch of ChatGPT in late 2022, the cloud market growth rate had steadily declined, as might be expected for a large, decade-old market. Since then, AI has helped the cloud market to grow by 185%, with year-on-year growth rates tripling. AI-specific cloud services now account for around a third of the total market.

Among the major cloud providers, Amazon maintains a strong lead in the market, while Microsoft and Google continue to achieve substantially higher growth rates. Q3’s worldwide market share for these companies was 26%, 19%, and 16%, respectively. Among the tier-two cloud providers, those with the highest growth rates included Oracle and a group of neoclouds: CoreWeave, Crusoe, Nebius, Fluidstack, Together AI and Nscale. Anthropic and OpenAI also now rank strongly through the platform portions of their operations. After launching cloud services this year, SpaceX/SI has already jumped into the top 10 based on cloud infrastructure service revenues. The rapid growth of neoclouds is now causing the market share of many more established cloud providers to erode. “AI has totally transformed the cloud market in terms of service capabilities, customer demand, and growth opportunities,” said John Dinsdale, Chief Analyst at Synergy Research Group. “In the 10 years before the launch of ChatGPT, cloud providers drove a rapid shift in workloads and investment from on-premises data centers towards public cloud services. What we now see is AI technology propelling cloud markets in a way that was unimaginable just four years ago. As the growth rate jumps to well over 50%, the leading cloud providers are benefiting from surging revenues, but they are also facing a much-changed market landscape, with AI labs and neoclouds emerging as both partners and competitors.”

With most major cloud providers reporting their Q3 earnings, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $167.7 billion, with trailing 12-month revenues reaching $558 billion. Public IaaS and PaaS services account for the bulk of this market, and those grew by 59% in Q3.

Geographically, the cloud market continues to grow strongly in all regions of the world. Notably, the US, which is by far the largest market, also had the highest growth rate among the major countries. It now accounts for 44% of the world market. When measured in local currencies, other countries with the strongest growth included India, Indonesia, Ireland, Canada and Taiwan. In Europe, the largest cloud markets are the U.K. and Germany, but the fastest-growing markets were Ireland, Norway, Denmark, Finland and the Netherlands.