Cloud Computing Statistics 2026: Spending, Market Share and AI Demand

Worldwide cloud infrastructure spending reached $143.4 billion in the second quarter of 2026, and the year-on-year growth rate increased for the 11th successive quarter, reaching 43%, the highest in the last eight years. Amazon maintains a strong lead in the market, though Microsoft and Google continue to achieve substantially higher growth rates. The three held worldwide market shares of 28%, 20%, and 15% respectively in the quarter. The cloud computing statistics below track that quarter against the one a year earlier.

Trailing twelve-month cloud infrastructure revenues reached $500 billion, and over those last 11 quarters, the market has doubled in size. That doubling is the number that reframes every other figure below: adoption rates, vendor shares and cost-control data all describe a market that is roughly twice the size it was three years ago. The sections that follow cover vendor share, hyperscaler revenue, the neocloud tier, European adoption rates by country and company size, spend governance, UK market concentration, and breach economics.

Key Takeaways

• Public IaaS and PaaS services, which account for the bulk of the market, grew by 47% in Q2.
• The top three providers account for 67% of the public cloud market.
• Amazon’s market share has averaged just under 30% over the past four quarters, down from a little over 32% in 2021.
• 52.7% of EU enterprises used paid cloud computing services in 2025, marking a 7.4 percentage point increase compared with 2023.
• Wasted cloud spend rose to 29%, the first increase in five years.
• AI-enabled breaches cost an average of $6 million, roughly $1 million more than the global breach average of $4.99 million.
• UK customers spent £10.5 billion on cloud services in 2024, with spending growing by nearly 30% each year since 2020.

Editor’s Choice

• Quarterly market size: cloud infrastructure service revenues were $143.4 billion, with trailing twelve-month revenues reaching $500 billion.
• AWS segment sales: $42.2 billion, up 37% year over year.
• Microsoft Cloud revenue: $59.3 billion, up 27% year-over-year.
• Google Cloud growth: revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions.
• GenAI cloud services growth: growing at 165% year-over-year.
• Neocloud presence: nine neocloud companies are now among the top 40 cloud providers.
• EU enterprise adoption: 84.67% of large enterprises reported purchasing cloud services in 2025.

Global Cloud Computing Statistics: Infrastructure Spending

These cloud computing statistics draw on 10 sources: 7 Tier 1 regulator decisions, government statistics and company results, plus 3 Tier 2 industry research reports. Publication dates run from 2025 through July 2026, the most recent being the Q2 earnings cluster and IBM’s breach-cost report. Only primary or official data qualified for inclusion, and figures are updated here when the underlying sources publish new editions.

• Q2 enterprise spending on cloud infrastructure services jumped by more than $43 billion from the second quarter of last year to reach $143 billion.
• Quarterly cloud infrastructure service revenues, including IaaS, PaaS and hosted private cloud services, were $143.4 billion.
• Worldwide cloud infrastructure service revenues were $106.9 billion in Q3 2025, with trailing twelve-month revenues reaching $390 billion.
• The worldwide market value reached $107 billion in Q3 2025, up from $68 billion eight quarters earlier.
• Public IaaS and PaaS services account for the bulk of this market, and those grew by 47% in Q2.
• The chasing pack of cloud providers is all very substantially smaller than Amazon, Microsoft and Google.

Source: SRG Research cloud infrastructure data, Q3 2025 and Q2 2026

Two quarters of the same series tell the story better than either does alone. The market added roughly a third to its quarterly run rate in three quarters, and the growth rate itself accelerated rather than decaying, which is the opposite of what a maturing infrastructure market normally does.

What are three types of cloud computing?

Cloud services are split into three delivery models. Infrastructure as a service covers processing, storage, networking, and other raw computing resources, while platform as a service covers services that can be used to develop, test, run, and manage applications in the cloud. Software as a service is the third model, and it is what most enterprises buy first: 85.2% of EU enterprises used paid cloud computing for e-mail services in 2025.

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Cloud Market Share by Provider

• Amazon, Microsoft, and Google held worldwide market shares of 28%, 20%, and 15%, respectively, in Q2 2026.
• The leadership of the major cloud providers is even more pronounced in public cloud, where the top three account for 67% of the market.
• Among the big three, Amazon’s market share has gradually eroded, while both Microsoft and Google have been gaining share.
• Outside the big three, the biggest story in the Q3 2025 data was the gradual increase in market share of Oracle and the neoclouds.

By the numbers: SRG Research, now part of TechInsights, puts the big three at 28%, 20% and 15% of worldwide cloud infrastructure spending in Q2 2026, against 29%, 20% and 13% in Q3 2025. Amazon lost a point of share across those three quarters while Google gained two.

Recent Developments

• July 30, 2026 (Q2 2026 data): SRG Research, now part of TechInsights, announced that Q2 enterprise spending on cloud infrastructure services reached $143 billion, with the growth rate at 43%.
• July 30, 2026: Amazon reported AWS net sales up 37%, its fastest growth in 18 quarters, to a $169 billion annualized revenue run rate.
• July 29, 2026: Microsoft reported Microsoft Cloud revenue of $59.3 billion in its fiscal fourth quarter, up 27% year-over-year, and said Azure revenue surpassed $100 billion for the first time across fiscal year 2026.
• July 29, 2026: IBM published its 2026 Cost of a Data Breach Report, finding one in four malicious breaches were AI-enabled, a 56% increase over last year.
• March 18, 2026: Flexera released its 2026 State of the Cloud Report, showing wasted cloud spend rising to 29% for the first time in five years.
• February 3, 2026: Eurostat reported that 52.7% of EU enterprises used paid cloud computing services in 2025.

Hyperscaler Cloud Revenue in Q2 2026

• AWS segment sales increased 37% year-over-year to $42.2 billion, per Amazon’s second-quarter results filed with the SEC.
• AWS segment operating income was $16.6 billion, compared with $10.2 billion in the second quarter of 2025.
• Revenue in Intelligent Cloud was $39.3 billion and increased 32%, up 31% in constant currency, according to Microsoft’s fiscal 2026 fourth quarter earnings release.
• Google Cloud revenue was $24.768 billion for the June 2026 quarter, against $13.624 billion a year earlier, in Alphabet’s segment results.
• Google Cloud segment operating income was $8.814 billion, compared with $2.826 billion in the same quarter of 2025.
• Microsoft returned $10.2 billion to shareholders in dividends and share repurchases in the fourth quarter of fiscal year 2026.

Is there a high demand for cloud computing?

Demand is running well ahead of the market’s own recent history. The year-on-year growth rate increased for the 11th successive quarter in Q2 2026, and AWS posted its fastest growth in 18 quarters. Google Cloud revenue grew 1.8 times year over year, with revenues accelerating to 82% growth.

Cloud Growth Rates by Provider

Growth ranks invert the share ranking, and the gap is widening. Google Cloud revenues accelerated to 82% growth, driven by demand for AI infrastructure and AI solutions. Azure and other cloud services revenue increased 43% at Microsoft, and AWS grew 37% at Amazon.

• Alphabet revenues grew 24% year-over-year while Google Cloud revenues accelerated to 82% growth.
• Azure and other cloud services revenue increased 43%, and Microsoft Cloud revenue rose 27% to $59.3 billion.
• AWS net sales increased 37%, its fastest growth in 18 quarters.
• GenAI-specific cloud services are growing at 165% year over year.
• GenAI has been the primary driver of that accelerated market growth, having been launched just before growth rates began to increase.

The accelerated cloud growth rate over the last three years, and in particular over the last four quarters, has been quite remarkable, said John Dinsdale, chief analyst at SRG Research. The growth ranking above tells the same story from the vendor side: the fastest riser is the smallest of the big three, and its gap to the market leader is widening rather than closing.

Is AI replacing cloud computing?

AI is not displacing cloud demand; it is the line item generating most of the new demand. GenAI-specific cloud services are growing at 165% year over year, and AI technology is enabling enhanced functionality and increased growth across a much broader range of cloud services. Model training and inference both run on rented infrastructure, so every AI product shipped by an enterprise reads as cloud consumption on somebody’s quarterly statement.

Neocloud Providers and the Tier-Two Cloud Market

A second tier of GPU-first providers has become large enough for market trackers to count separately. The same machine learning workloads that lifted the hyperscalers built it.

• Nine neocloud companies are now among the top 40 cloud providers, based on cloud infrastructure service revenues.
• Among the tier two cloud providers, those with the highest growth rates include CoreWeave, OpenAI, Oracle, Crusoe, Nebius, Anthropic and Nscale.
• Among the neoclouds, CoreWeave is by far the largest player in this market, while other substantial neoclouds that are growing extremely rapidly include Crusoe, Nebius and Lambda.
• Amazon, Microsoft and Google together accounted for 63% of enterprise spending on cloud infrastructure services in Q3 2025; four quarters earlier it was 62%, and four quarters before that 61%.
• The U.S. share of the worldwide market has increased over the last two quarters, reflecting the huge buildout of U.S. infrastructure by both hyperscale cloud operators and neoclouds.

Source: SRG Research cloud infrastructure data, Q3 2025

Worth noting: Two things rose at once. The big three climbed from 61% to 63% of enterprise cloud infrastructure spending across eight quarters, while Oracle and the neoclouds also gained ground. The share came out of the long tail of smaller providers, not out of the leaders.

EU Enterprise Cloud Adoption by Country

• In 2025, 52.7% of EU enterprises used paid cloud computing services, marking a 7.4 percentage point increase compared with 2023, per Eurostat.
• A more substantial increase was registered compared with 2014, when 17.8% of enterprises used paid cloud services.
• The highest shares in 2025 were recorded in Finland (79.2%), Italy (75.6%) and Malta (74.9%).
• Less than a quarter of enterprises in Romania (24.9%), Greece (24.3%) and Bulgaria (17.8%) used such paid services.
• Between 2023 and 2025, Lithuania (+19.7 pp), Italy (+14.2 pp) and France (+13.7 pp) experienced the highest rise.

The spread between the top and bottom of that table is wide enough to make the EU average misleading on its own. A Finnish company is far more likely to buy cloud services than a Bulgarian one, and the gap has persisted across a decade of EU digital single market policy.

Source: Eurostat, cloud computing use by EU enterprises, 2025

Cloud Adoption by Company Size

• The share of enterprises using paid cloud computing services was particularly high among large enterprises, where 84.67% reported purchasing such services in 2025, an increase of 6.9 pp compared with 2023.
• In 2025, 66.78% of medium-sized enterprises used purchased cloud computing services, compared with 59.09% in 2023.
• Among small businesses, the share using paid cloud computing services increased by 7.48 pp to 49.3% over the same period.
• More than three-quarters (76%) of large enterprises now spend over $5 million monthly on cloud services.

The size gradient matters more than the EU average does. Cloud adoption looks near-universal at the top of the market and roughly a coin flip at the bottom, which means most of the remaining European growth has to come from small firms rather than from new enterprise logos.

What Enterprises Actually Buy From the Cloud

• In 2025, most EU enterprises used paid cloud computing for e-mail services (85.2%), office software (71.7%) and file storage (71.5%).
• Security software applications (65.5%), finance or accounting software applications (58.2%), and hosting for the enterprise’s database (45.5%) were also popular.
• Enterprises also used paid cloud services for enterprise resource planning software (30.1%), computing power to run the enterprise’s own software (28.2%), and customer relationship management software (27.9%).
• Computing platforms for application development, testing or deployment were used by 26.1% of enterprises.

What are the 5 most common uses of cloud computing?

The five most common purchases in the EU survey are e-mail, office software, file storage, security software, and finance or accounting software. E-mail leads at 85.2%, with office software at 71.7%, file storage at 71.5%, security software at 65.5% and finance or accounting software at 58.2%. Raw compute sits near the bottom of that list, which suggests most cloud buyers are still purchasing applications rather than infrastructure.

Hybrid and Multi-Cloud Environments

Hybrid estates are the majority case, and the technologies inside them rarely come from a single vendor. Monitoring coverage across AWS accounts shows the same split estate from the operations side.

• 73% of organizations operate hybrid environments, while multi-cloud adoption continues to rise, often driven by mergers, SaaS sprawl, and decentralized teams rather than deliberate strategy.
• For public cloud provider usage, AWS (83%) was slightly ahead of Azure (79%) for active enterprise workloads, and Google Cloud Platform remains a distant third.
• The market total includes IaaS, PaaS and hosted private cloud services, so private capacity sits inside the headline figure rather than outside it.
• Nearly half (45%) of those surveyed report using generative AI extensively, up from 36% in 2025.

Source: Flexera 2026 State of the Cloud Report

Cloud Waste and FinOps Maturity

Governance discipline and cost discipline moved in opposite directions this year, and generative AI is the reason.

• Cloud-based AI workloads are surging, causing an increase in wasted cloud spend (29%) for the first time in five years.
• 81% of respondents state they are using generative AI, compared to 72% last year and 47% in 2024.
• Managing cloud spend remains a top challenge (85%), with 63% having established FinOps teams and 64% reporting value delivered to business units.
• 71% of organizations now operate a Cloud Center of Excellence.
• More than half (53%) of cloud leaders cite security and compliance as their top challenge for cloud-based AI initiatives, followed closely by data quality for AI model training (40%).

Source: Flexera 2026 State of the Cloud Report

Key finding: Flexera’s 2026 survey of more than 750 cloud decision-makers records wasted cloud spend at 29%, its first rise in five years, alongside record governance adoption at 71% for a Cloud Center of Excellence. Maturity in process did not translate into control of spend once AI workloads scaled.

UK Cloud Concentration and the CMA Findings

Britain’s competition regulator measured this market directly, which makes its numbers unusually hard evidence next to vendor-reported paid cloud services figures.

• UK customers spent £10.5 billion on cloud services in 2024, with spending growing by nearly 30% each year since 2020, according to the Competition and Markets Authority’s cloud services market investigation.
• The IaaS market is highly concentrated, and the two largest providers, Microsoft and AWS, each have a high share of supply at 30-40% in 2024.
• Microsoft has grown its share while AWS’ share has decreased since 2020.
• Microsoft’s share of the PaaS market has slightly increased, and AWS’ share has remained stable since 2020.
• The third-largest provider, Google, has a much lower share of supply in both IaaS and PaaS markets at 5-10%, although this has grown since 2020.
• Microsoft and AWS have been generating sustained returns from their cloud services substantially above their cost of capital for a number of years.

Source: Competition and Markets Authority cloud services market investigation, 2024 data

The regulator publishes bands rather than point estimates, so those bands are worth reading as a floor on concentration rather than a precise measurement.

Cloud Security and Breach Economics

Breach costs set the downside on every cloud migration decision, and the cybersecurity sector is repricing that downside around AI-enabled attacks. IBM’s annual Cost of a Data Breach Report is the benchmark most security teams price against.

• One in four malicious breaches were AI-enabled, a 56% increase over last year, and these breaches cost an average of $6 million, roughly $1 million more than the global breach average of $4.99 million, per IBM’s 2026 edition of that report.
• Financial services breaches were reported to cost on average $6.3 million, while energy breaches cost on average $5.2 million.
• Most AI-driven attacks reported in the study targeted critical infrastructure sectors (62%).
• More than 20% of organizations reported a breach targeting AI models or applications, and the most common causes were compromised APIs, applications, or plug-ins (27%).
• Companies that reported using AI and automation in security operations cut breach costs by an average of almost $2 million, yet one in four organizations have still not adopted these tools.

Remote access remains part of the same exposure surface, which is why VPNs and identity controls sit alongside workload security in most cloud programs. Productivity suites tracked in our Microsoft 365 statistics carry the same identity risk as infrastructure does.

What is the biggest threat to cloud computing?

The measurable answer this year is AI-enabled intrusion rather than any single misconfiguration class. More than 20% of organizations reported a breach targeting AI models or applications, with compromised APIs, applications, or plug-ins the most common cause at 27%. Security software sits just behind e-mail, office software and file storage among the cloud services EU enterprises buy, at 65.5%, which helps reduce exposure without removing it.

Conclusion

Cloud infrastructure spending of $143.4 billion in a single quarter against a 43% growth rate describes a market that is compounding rather than maturing. The composition of that growth has shifted. GenAI-specific cloud services growing at 165% sit on top of a base where 52.7% of EU enterprises now buy paid cloud services. The AI layer is being sold into an installed base that was already broad.

The people who should read these numbers most closely are finance teams and regulators. Wasted spend at 29%, rising for the first time in five years, lands at the same moment a competition regulator measured 30-40% IaaS share-of-supply bands for the two largest providers in 2024. If both trends hold through the current year, cost governance and competition policy will shape cloud economics more than raw capacity does.