Q2 Cloud Market Nears $100 Billion Milestone - and it's Still Growing by 25% Year over Year

RENO, NV, July 31, 2025

New data from Synergy Research Group shows that Q2 enterprise spending on cloud infrastructure services increased to almost $99 billion worldwide, up over $20 billion from the second quarter of 2024. Backing out the impact of some major currency fluctuations over the period, this is the third successive quarter of 24-25% year-on-year growth, with growth rates continuing to nudge upwards. This represents a very strong bounce back from 2023, when the growth rate was averaging 19%. Cloud providers have seen quarterly revenues jump by $36 billion since the beginning of 2023, with GenAI clearly being the major driver of this growth. In terms of competitive positioning, Amazon maintains a strong lead in the market though Microsoft and Google continue to achieve higher growth rates. Their Q2 worldwide market shares were 30%, 20% and 13% respectively. Among the tier two cloud providers, those with the highest growth rates include CoreWeave, Oracle, Databricks and Huawei. From a virtual standing start two years ago, CoreWeave is now achieving over a billion dollars in quarterly cloud revenue and is on the verge of breaking into the top twelve ranking of cloud providers, thanks to its AI and GPU services. With most of the major cloud providers having now released their earnings data for Q2, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS and hosted private cloud services) were $98.8 billion, with trailing twelve-month revenues reaching $366 billion. Public IaaS and PaaS services account for the bulk of the market and those grew by 27% in Q2. The dominance of the major cloud providers is even more pronounced in public cloud, where the top three account for 68% 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 Brazil, India, Australia, Indonesia, Ireland and Mexico, all growing at rates 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 25% in Q2. In Europe the largest cloud markets are the UK and Germany, but the big markets with the highest growth rates were Ireland, Spain and Italy.

“This is a good time to be a cloud provider. Despite being on the verge of becoming a hundred billion dollar per quarter market, cloud revenues are still growing by around 25% per year, and we are forecasting that average annual growth over the next five years will remain above 20%,” said John Dinsdale, a Chief Analyst at Synergy Research Group. “We can thank GenAI for supersizing what was already a big and high-growth market. In Q2 we saw growth of 140-180% in GenAI-specific cloud services, and AI is also contributing to enhancements and added growth across the broader portfolio of cloud services. Beyond enterprise cloud services, AI is also powering the expansion of revenues in other digital services. We are seeing strong double-digit growth in revenues from social media and search.”