Cloud Infrastructure Market Size to Surpass USD 923.05 Billion by 2035 Driven by AI Workloads and Hybrid Cloud Adoption

The global cloud infrastructure market size was evaluated at USD 294.99 billion in 2025 and is predicted to surpass around USD 923.05 billion by 2035, expanding at a strong CAGR of 12.08% from 2026 to 2035.  Cloud infrastructure is more rapid, scalable, accessible, and affordable than a local data centre because CSPs pool and virtualize physical resources, which drives cloud infrastructure market growth.

Ottawa, Feb. 26, 2026 (GLOBE NEWSWIRE) -- According to Precedence Research, the global cloud infrastructure market size is expected to be worth around USD 923.05 billion by 2035, increasing from USD 331.27 billion in 2026, with a significant CAGR of 12.08% between 2026 and 2035.

The cloud infrastructure market is growing quickly as businesses adopt more flexible and scalable systems. Rising demand for AI-driven applications and hybrid cloud setups is pushing companies to move away from traditional infrastructure toward more efficient, adaptable solutions.

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Cloud Infrastructure Market Key Highlights

• North America accounted for over 42% of the total revenue share in 2025.
• Asia-Pacific is projected to witness the fastest growth rate during the forecast period.
• By type, the hardware segment dominated the market with a 56% revenue share in 2025.
• The services segment is anticipated to expand at a strong CAGR of 13.4% from 2026 to 2035.
• By end use, the IT & telecom sector contributed more than 28% of revenue in 2025.
• The healthcare sector is expected to grow at the fastest CAGR over the forecast timeframe.

What is Cloud Infrastructure?

Cloud platforms offer readily available infrastructure, which enables rapid app advancement and deployment without the requirement to manage physical hardware. Cloud infrastructure is the framework that enables cloud computing to exist by integrating hardware and software services, including servers, data storage, networks, virtualization software, and management tools. Cloud infrastructure works via a spread-out system of server infrastructure, characteristically owned by an organization that maintains data centers and sells usage rights to consumers.

The cloud infrastructure connects through the internet, which requires networks to send and receive information. This networking needs building, maintaining, and repairing physical networking components, like data transmission lines, switches, routers, and load balancers, so the data is accessible to consumers. Cloud infrastructure is not solely owned by organizations selling usage.

Private Industry Investments for Cloud Infrastructure:

1. Nvidia’s $2 billion investment in CoreWeave: Nvidia significantly increased its stake to expand AI-ready data center capacity and support high-performance GPU compute infrastructure.
2. Private equity funding for Vantage Data Centers: Vantage secured a multi-billion-dollar equity investment led by DigitalBridge and Silver Lake to accelerate data center development across global markets.
3. ESR’s ₹900 crore (~$110 million+) data center investment in Navi Mumbai: Asia-Pacific real asset manager ESR is building a large hyperscale facility to meet growing cloud infrastructure and data storage demand in India.
4. Reliance Industries and Adani Group’s combined around $210 billion AI and data infrastructure investment plan: India’s major conglomerates announced massive long-term investments in AI-driven data centers and cloud computing infrastructure.
5. OpenAI and Tata Group partnership for 100 MW AI infrastructure in India: OpenAI is collaborating with Tata Consultancy Services to build substantial AI-ready cloud data center capacity, with potential to scale further.
6. $4 billion acquisition of DigitalBridge by SoftBank Group: SoftBank’s purchase of a major digital infrastructure investor broadens its data center and cloud-related asset base to support future AI and cloud expansion.

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Cloud Infrastructure Market Trends

1. Artificial Intelligence–Driven Infrastructure Expansion: The rapid adoption of generative AI and machine learning workloads is driving demand for high-performance cloud infrastructure, particularly GPU-accelerated computing and advanced data storage solutions. Cloud providers are expanding AI-optimized data centers and specialized services to support large-scale model training and inference.

2. Hybrid and Multi-Cloud Adoption: Enterprises are increasingly adopting hybrid and multi-cloud strategies to improve flexibility, avoid vendor lock-in, and enhance operational resilience. This trend is pushing cloud providers to offer better interoperability, unified management tools, and cross-platform security solutions.

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Cloud Infrastructure Market Opportunity

Cloud-driven Technologies Unlocks Market Opportunity

Increasing demand for cloud-driven technologies, like serverless computing, microservices, and containers, is transforming the way applications are developed and deployed. By scheming applications particularly for the cloud, businesses increase flexibility and lower expenses. These technologies remove the requirement for traditional server management, enabling businesses to scale up or down as required without manual intervention.

Majorly adopting hybrid and multi-cloud approaches to gain flexibility and optimize their IT environments. Hybrid cloud integrates public cloud services with private cloud or on-premises infrastructure, providing a mix of scalability and control. Multi-cloud approaches allow businesses to use solutions from multiple cloud providers, lowering reliance on a single vendor and improving resiliency. Cloud provides immense potential for increasing various businesses.

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Cloud Infrastructure Market Insights

Report Coverage	Details
Market Size by 2035	USD 923.05 Billion
Market Size in 2025	USD 294.99 Billion
Market Size in 2026	USD 331.27 Billion
Market Growth (2026 - 2035)	12.08% CAGR
Largest Market	North America
Base Year	2025
Forecast Period	2026 to 2035
Segments Covered	Type, End-use, and Region
Regions Covered	North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa

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Cloud Infrastructure Market Regional Insights

Why North America Dominates the Cloud Infrastructure Market?

North America dominated the market share in 2025. This region is the world’s most sophisticated capital, with advanced pools of funding from isolated equity, infrastructure funds, and public data center REITs, allowing the financing of multi-billion-dollar projects. Continues to build multi-region cloud infrastructure, helping both public and hybrid models. Invests massively in renewable-driven data centers and AI-improved clusters.

For Instance,

• In October 2025, Google announced an AI hub in Visakhapatnam, Andhra Pradesh, allowing Google to organize its fll AI stack to supports to speed-up AI-based transformation in India. The novel AI-based hub integrates significant data center capacity, AI infrastructure, large-scale energy sources, and a prolonged fiber-optic network in one place. (Source: https://www.googlecloudpresscorner.com)
  

How Big is the Size of the U.S. Cloud Infrastructure Market in 2026?

The U.S. cloud infrastructure market size is valued at USD 98.15 billion in 2026 and is predicted to reach around USD 278.08 billion by 2035, accelerating at a notable CAGR of 12.29% from 2026 to 2035.

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U.S. Cloud Infrastructure Market Trends

The U.S. market remains a global leader, with spending on IaaS, PaaS, and hybrid cloud solutions rising as businesses accelerate digital transformation and Artificial Intelligence (AI) adoption. Major providers such as Amazon Web Services, Microsoft Azure, and Google Cloud continue to invest in data centers, networking, and specialized services for machine learning, analytics, and edge computing.

Asia Pacific’s Growing Cloud Infrastructure Industry

Asia Pacific is expected to have the fastest growth in the market during the forecast period. Presence of strong technological infrastructure, early acceptance of advanced services, and consistent spending in research and development. China and India depend massively on cloud platforms to help digital public services, financial technology, and large customer-facing applications.

Rapidly adopting Machine Learning (ML), Artificial Intelligence (AI), and Internet of Things (IoT), which requires advanced cloud-based, high-performance computing resources. The presence of major players such as AWS, Microsoft, Google, Alibaba, Huawei, and Tencent, which contributes to the growth of the market.

China Cloud Infrastructure Market Trends

China’s market continues to expand steadily, driven by enterprise digital transformation and increasing cloud migration across industries such as finance, manufacturing, retail, and government. Artificial intelligence workloads are a major growth catalyst, fueling demand for high-performance computing, data storage, and AI-optimized cloud services.

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Cloud Infrastructure Market Segmental Insights

Type Insights

Why is the Hardware Segment Dominating the Cloud Infrastructure Market?

The hardware segment dominated the market in 2025. Its capability to support organizations expand and shrink compute, network, and storage capacity. Cloud hardware infrastructure provides major benefits by replacing expensive on-premise, physical hardware with virtualized, flexible, and scalable resources. Increasing access to advanced, high-performance computing, storage, and networking hardware.

The services segment is the fastest-growing in the market during the forecast period. Cloud computing services provides increase efficiency, flexibility, and strategic value compared to traditional on-premises IT infrastructure. By using cloud services, organizations benefit from scalable resources, expense savings, and improved security. Applications of cloud technology comprise growing effectiveness, flexibility, and partnership, making it a significant tool for modern organizations.

End-use Insights

Why is the IT & Telecommunications Segment Dominating the Cloud Infrastructure Market?

The IT & telecommunications segment dominated the market in 2025. Cloud infrastructure enables telecom businesses to make their network infrastructure more agile and quickly adjust their services for seasonal spikes in demand, scaling up when demand increases and down when it falls. With convenient cloud management technology, telecom organizations save lots of time and effort by automating different technologies.

The healthcare segment is the fastest-growing in the market during the forecast period. Advanced cloud technology significantly eases the complexities of data storage for medical care providers, lowering storage expenditure in the long run. Cloud computing helps consumers to lessen the hardware, software, and services expenses, and helps to eliminate the installation and maintenance of software. Cloud computing in medical care allows health practitioners to gain secure access to patient records and healthcare data.

✚ Related Topics You May Find Useful:

➡️ Cloud Infrastructure Services Market: Explore how scalable IT environments are transforming enterprise operations and digital ecosystems

➡️ Cloud Computing Market: Understand the rapid shift toward on-demand computing power and flexible business solutions

➡️ Healthcare Cloud Infrastructure Market: Discover how digital health systems are leveraging secure cloud platforms for better patient outcomes

➡️ Cloud Services Market: Analyze the expanding role of cloud-based solutions across industries and business functions

➡️ Cloud Computing in Energy Market: See how energy companies are adopting cloud technologies to optimize operations and data management

➡️ Infrastructure as a Service Market: Gain insight into the growing demand for cost-effective, scalable infrastructure solutions

➡️ Hyperscale Cloud Market: Track the rise of large-scale data centers powering global digital transformation

➡️ Cloud Security Market: Examine increasing investments in safeguarding cloud environments against evolving cyber threats

➡️ Cloud Native Platforms Market: Discover how modern application development is shifting toward containerized and microservices architectures

➡️ Infrastructure Monitoring Market: Understand the importance of real-time system visibility and performance optimization tools

➡️ Cloud Logistics Market: Explore how cloud integration is reshaping supply chains and logistics efficiency

➡️ Cloud Migration Services Market: Learn how businesses are transitioning legacy systems to cloud environments for agility and growth

Top Companies in the Cloud Infrastructure Market & Their Offerings:

• AWS: Offers the most extensive global infrastructure with over 200 services for compute, storage, and networking.
• Microsoft Azure: Focuses on enterprise-grade IaaS and PaaS with deep integration for Windows and Office environments.
• Google Cloud (GCP): Specializes in high-performance infrastructure optimized for data analytics, AI, and Kubernetes.
• Alibaba Cloud: Provides scalable cloud resources and e-commerce solutions, primarily dominant in the Asian market.
• Oracle Cloud: Tailors its infrastructure for high-performance database workloads and enterprise resource planning.
• IBM Cloud: Concentrates on hybrid cloud solutions and AI for highly regulated industries like finance and healthcare.

Platform & Software Leaders

• VMware: Supplies virtualization software that allows businesses to run consistent operations across different clouds.
• Red Hat: Offers the OpenShift platform to manage containerized applications across hybrid and multi-cloud setups.
• Salesforce: Provides a specialized platform-as-a-service for building and scaling customer relationship applications.
• SAP: Delivers a cloud platform designed to integrate and extend core business process applications.

Hardware & Connectivity

• HPE: Uses the GreenLake model to provide on-premises hardware with a cloud-like, pay-per-use experience.
• Dell Technologies: Offers the APEX portfolio to simplify how organizations deploy and manage multicloud infrastructure.
• Cisco Systems: Provides the networking and security hardware essential for connecting and protecting cloud environments.
• Intel Corporation: Produces the processors and hardware accelerators that power the world’s cloud data centers.
• NetApp: Specializes in storage software and data management services across hybrid cloud environments.
  

Recent Developments

• In December 2025, IBM and Confluent, Inc., the data streaming pioneer, entered into a definitive agreement. According to the collaboration, IBM acquired all of the issued and remaining common shares of Confluent for $31 per share, representing an enterprise value of $11 billion. (Source: https://newsroom.ibm.com)
  
• In December 2025, Alphabet acquired Intersect to provide advanced data center and energy infrastructure solutions for $4.75 billion, and the assumption of debt. The minority stake in Intersect from an earlier announced funding round is owned by Google.  (Source: https://abc.xyz)

Segments Covered in the Report

By Type

• Hardware
• Services

By End-Use

• IT & Telecommunication
• Retail & E-Commerce
• Healthcare
• Media & Entertainment
• Sports & Events
• BFSI
• Real Estate
• Others

By Region

• North America 
  • U.S. 
  • Canada 
  • Mexico 
  • Rest of North America 
• South America
  • Brazil 
  • Argentina 
  • Rest of South America 
• Europe
  • Western Europe  
    • Germany 
    • Italy 
    • France 
    • Netherlands 
    • Spain 
    • Portugal 
    • Belgium 
    • Ireland 
    • UK 
    • Iceland 
    • Switzerland 
    • Poland 
    • Rest of Western Europe 
  • Eastern Europe  
    • Austria 
    • Russia & Belarus 
    • Türkiye 
    • Albania 
    • Rest of Eastern Europe 
• Asia Pacific
  • China 
  • Taiwan 
  • India 
  • Japan 
  • Australia and New Zealand,  
  • ASEAN Countries (Singapore, Malaysia) 
  • South Korea 
  • Rest of APAC 
• MEA
  • GCC Countries 
    • Saudi Arabia 
    • United Arab Emirates (UAE) 
    • Qatar 
    • Kuwait 
    • Oman 
    • Bahrain 
  • South Africa 
  • Egypt 
  • Rest of MEA

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