Global cloud infrastructure spending rose 22% year on year in the second quarter of 2025, reaching $95.3 billion, according to new figures from Canalys.
Big three hyperscalers still dominate the cloud market: GCP, AWS, and Azure figures
The growth represents the fourth consecutive quarter of expansion exceeding 20%, driven primarily by AI consumption, renewed legacy migrations, and cloud-native enterprise scaling.
The big three hyperscalers maintained their market dominance, with AWS, Microsoft Azure, and Google Cloud collectively capturing 65% of global spending. Customer expenditure with these providers increased 27% year-over-year, although each platform exhibited varying performance trajectories.
As Channel Insider previously reported in our comprehensive comparison of the three platforms, these cloud giants continue to hold approximately 66% of the total market share.
Microsoft Azure and Google Cloud posted the strongest gains, both delivering growth in excess of 30% in Q2 2025. AWS, despite leading the market with a 32% share, recorded a more modest 17% growth consistent with the previous quarter. However, AWS’s absolute dollar increase still outpaced those of its competitors due to its larger revenue base.
“Customer demand for AI services is evolving from a primary focus on availability and ease of use to a greater emphasis on flexibility and fit-for-purpose model choice,” said Yi Zhang, senior analyst at Canalys.
Hyperscalers ramp up infrastructure investments
The hyperscalers are responding with massive infrastructure investments and reporting growth in contracts and market share.
Spending targets increase
- Google raised its 2025 capital expenditure target from $75 billion to $85 billion
- AWS projected total spending exceeding $100 billion
- Microsoft announced approximately $80 billion in infrastructure expansion for its current fiscal year.
Double-digit growth across the big three
Google Cloud recorded 34% growth, increasing its market share to 11%. The company reported doubled contracts above $250 million year-over-year, while billion-dollar agreements signed in the first half of 2025 matched the entire 2024 total.
Azure, currently the second-largest cloud provider after AWS, achieved 39% year-over-year growth and maintained its 22% market share, driven by traditional workload migrations, cloud-native scaling, and the adoption of AI.
The platform expanded its AI model portfolio through Azure AI Foundry, adding offerings from OpenAI, DeepSeek, Meta, and xAI. The strong performance follows Microsoft’s recent announcement of a new partner organization to drive AI and technology sales through the channel.
AWS faced capacity constraints due to power and semiconductor shortages, despite reporting a $195 billion backlog, up 25% year-over-year.
The company launched Amazon Bedrock AgentCore and expanded its AI marketplace with over 800 agents and tools. AWS integrated Anthropic’s Claude Opus 4.1 and OpenAI’s GPT-oss models into Amazon Bedrock during the quarter.
The performance builds on the company’s enhanced partner program benefits launched late last year.