- Gartner data shows faster-than-market growth across regions
- AI workloads emerge as key driver of cloud infrastructure demand
Alibaba Cloud extended its lead in China’s infrastructure-as-a-service (IaaS) market in 2025, as surging demand for AI workloads reshaped competition among cloud providers.
According to data released by Gartner, Alibaba Cloud increased its share of China’s IaaS market to 32.8% in 2025, up from 30.1% a year earlier, reinforcing its position as the country’s top cloud service provider.
Revenue in China rose 34.4% year-on-year, outpacing the broader market’s 23.4% growth by more than 10 percentage points.
Gartner said AI-native workloads have become the primary source of new IaaS demand, with access to computing capacity emerging as a key factor shaping market share.
Providers with full-stack AI capabilities and scale advantages are increasingly pulling ahead.
Globally, Alibaba Cloud also expanded its footprint. In the Asia-Pacific region, where the IaaS market reached about $75.2 billion in 2025, the company’s share rose from 20.8% to 22.5%, maintaining its leading position.
Its global market share increased from 7.2% to 7.7%, with revenue growth of about 35%, exceeding the global average growth rate of 25.3%, Gartner says.
