Synergy Research Group recently unveiled their findings about global cloud infrastructure spending by enterprises. The group determined that the spending had surpassed an annualised run rate of half-a-trillion dollars for the first time, driven largely by accelerating generative AI (GenAI) demand.
Quarterly revenue of $128.6 billion in Q1 2026 represents a 35% year-on-year jump. The research company noted it is the highest growth rate seen since the last quarter of 2021, when the market was only 40% of its current size.
“The Q1 market is now 15 times larger than it was a decade ago and continues to expand at 35% annually”, Chief Analyst John Dinsdale stated. “Reaching a half-trillion-dollar run rate underscores the far-reaching impact of cloud computing and AI on the IT landscape”.
GenAI continues to reshape the competitive landscape, fuelling demand across hyperscalers and a rising tier of neocloud providers.
Amazon retained its long-time lead with a 28% worldwide share, ahead of Microsoft at 21% and Google at 14%. In the higher-growth public IaaS and PaaS segment, which expanded 38% in Q1, the top three collectively hold 67% of the market.
The neocloud segment is emerging as a meaningful force. Five neocloud companies now sit within the top 30 global cloud providers, with CoreWeave, OpenAI, Oracle, Crusoe, Nebius, Anthropic, and ByteDance among those posting the highest growth rates.
Geographically, India, Indonesia, Ireland, Taiwan, Thailand, and Malaysia are outpacing the worldwide average in local currency terms. The US remains by far the largest market, growing 37% in Q1 alone, while Ireland, Norway and Poland are among the leaders across Europe.
Synergy forecasts sustained strong growth in the years ahead, with AI continuing to unlock new use cases and boost cloud provider revenues across all tiers of the market.
Source: Mobile World Live
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Source: Tahawul Tech