Cloud Infrastructure spending Surges 25% in Q3 2025 as AI Drives Growth
Global spending on cloud infrastructure services reached $102.6 billion in the third quarter of 2025,a 25% increase year-over-year,as businesses rapidly move beyond artificial intelligence (AI) experimentation and into full-scale implementation.
A new study by technology analyst firm Omdia reveals that Q3 2025 marked the fifth consecutive quarter of growth exceeding 20%, signaling sustained momentum in the cloud infrastructure market. The sector is currently dominated by three major players – Amazon Web Services (AWS), Microsoft Azure, and google Cloud – collectively accounting for 66% of global spending during the quarter, with combined year-on-year growth of 29%.
The competitive landscape is shifting, according to Omdia, moving away from incremental gains in AI model performance and toward robust platform-level capabilities. These advancements enable organizations to reliably deploy AI agents in real-world scenarios, supporting a diverse range of AI models.
“Collaboration across the ecosystem remains critical,” stated a senior director at Omdia. “Multi-model support is increasingly viewed as a production requirement rather than a feature, as enterprises seek resilience, cost control and deployment adaptability across generative AI workloads.”
One analyst at Omdia added that major cloud providers are significantly increasing investment in tools and services designed to build and run AI agents, addressing the inherent complexities of deploying agentic AI. “many enterprises still lack standardized building blocks that can support business continuity, customer experience and compliance simultaneously, which is slowing the real-world deployment of AI agents,” she noted.
Market Resilience and Regional Expansion
Omdia’s research indicates that order backlogs – representing orders received but not yet fulfilled – continued to grow for all three leading providers, demonstrating strong market resilience.
AWS maintained its leading position with a 32% market share and 20% revenue growth,representing its strongest performance since 2022. The cloud giant reported a backlog of $200 billion as of the end of Q3 2025. Expanding its reach in the Asia-Pacific region, AWS launched a new cloud region in New Zealand, featuring three availability zones to ensure business continuity and fault tolerance. In the AI space, Amazon Bedrock is rapidly evolving, offering expanded model options and enhanced platform features, including support for Claude 4.5,18 managed open-weight models,and improved AI safety and data automation tools. At AWS re:Invent 2025, the company unveiled the Nova 2 model family, Nova Act, and Nova Forge, bolstering its enterprise AI stack from foundational models to advanced agents and automation.
Microsoft Azure secured the second-place position with a 22% market share and a substantial 40% revenue growth. The company continues to invest heavily in Asian infrastructure, announcing plans in November 2025 to expand its Azure cloud region in Malaysia and launch a new datacenter region in India in 2026. Microsoft also reaffirmed its partnership with OpenAI in October 2025.
Google Cloud remained in third place, capturing an 11% market share and achieving 36% growth, largely driven by its enterprise AI offerings. As of September 30, 2025, Google Cloud reported a backlog of $157.7 billion, up from $108.2 billion in the previous quarter. On the platform front, Google’s Vertex AI Model Garden continues to expand its portfolio of large-scale AI models, with recent additions including multimodal variants from the Gemini 2.5 series, Kimi K2 Thinking, and DeepSeek-V3.2. In October 2025, Google Cloud launched Gemini Enterprise, an AI platform tailored for enterprise customers, integrating the Gemini model family with enterprise-grade AI agents, no-code advancement tools, and robust security and governance capabilities.
The accelerating adoption of AI, coupled with the ongoing need for scalable and resilient infrastructure, suggests continued strong growth for the cloud infrastructure market in the coming quarters. The focus is now firmly on providing the platform-level capabilities that will enable businesses to fully realize the potential of AI at scale.
