Global IaaS market share rises to 7.7% as AI-driven demand accelerates cloud infrastructure growth
Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, has once again been recognised as the largest cloud Infrastructure-as-a-Service (IaaS) provider by revenue in Asia Pacific, with its regional market share increasing to 22.5% in 2025, up from 20.8% in 2024. The findings come from the latest Gartner® report, Market Share: IaaS, Worldwide, 2025, 10 April 2026.
Alibaba Cloud ‘s continued leadership across Asia Pacific reflects the company’s sustained investment in AI-optimised infrastructure and its commitment to serving the evolving AI needs of enterprises across the region. The year-on-year share growth underscores the trust that customers across Asia Pacific continue to place in Alibaba Cloud as their preferred cloud partner.
Charts created by Alibaba based on Gartner research. Source: Gartner, Market Share: IaaS, Worldwide, 2025, 10 April 2026.
“Our growing market share across Asia Pacific and globally is a testament to the strength of our AI-native and agent-native cloud strategy and our relentless focus on customer outcomes,” said Dr. Li Feifei, Chief Technology Officer of Alibaba Cloud. “A lot of companies talk about AI infrastructure, model serving and agentic architecture. What the numbers show is that customers in this region are making real choices, and they’re choosing Alibaba Cloud. That commitment and trust are the result of years of building capacity ahead of demand.”
Alibaba Cloud’s momentum was particularly notable in several key markets. The company maintained its market-leading position by revenue in Chinese Mainland and Hong Kong, while holding second place in Malaysia. In Indonesia, Alibaba rose to second place in the market rankings. In Singapore, Alibaba climbed to third place and was the only company among global leading players to achieve triple-digit year-on-year growth, a significant milestone to Alibaba that highlights the company’s accelerating growth in one of Asia Pacific’s most competitive cloud markets.
Globally, Alibaba continued to rank as the world’s fourth largest IaaS provider by revenue in 2025, with its worldwide market share rising to 7.7%, up from 7.2% in 2024.
According to the Gartner report, “IaaS market growth accelerated in 2025, adding $45 billion in revenue and reflecting a growth rate of 24.3%. Outpacing 2024, AI-native workloads became the dominant source of net-new demand, with hyperscalers and neocloud providers capturing multibillion-dollar revenue increases driven by AI-optimized infrastructure and higher utilization intensity from persistent runtime consumption.”
The report also notes that “fragmented AI stacks, data gravity, and regulatory requirements reinforced IaaS as the unifying layer for portability and orchestration, while sovereign and industry-aligned offerings expanded the addressable market beyond global hyperscalers.”
Alibaba Cloud’s strong performance is underpinned by its strategy of driving growth through AI. The company has made significant investments in AI-optimised infrastructure to support the deployment of large-scale AI workloads across industries, with a total of 78data centers in Asia. By providing enterprises with the compute, storage, networking and security capabilities required for AI in production, alongside a comprehensive suite of AI models and tools, Alibaba Cloud is positioning itself as the cloud platform of choice for the AI era across Asia Pacific and global markets.
Gartner does not endorse any company, vendor, product or service depicted in its publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner publications consist of the opinions of Gartner’s business and technology insights organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this publication, including any warranties of merchantability or fitness for a particular purpose.
GARTNER is a trademark of Gartner, Inc. and its affiliates.
