London, 26 March 2026 — Quarterly spending on cloud infrastructure services reached $110.9 billion globally in Q4 2025, up 29% year on year, according to new data from Omdia. It was the sixth consecutive quarter of growth above 20%, driven by hyperscalers expanding AI infrastructure capacity as enterprise AI demand shifts from experimentation into production.
AWS held its market lead with 32% share and 24% year-on-year revenue growth. Microsoft Azure took second place at 22% share with 39% growth. Google Cloud, at 12% share, posted the fastest growth at 50%. Together, the three accounted for 66% of total cloud spending.
The capital commitments behind those numbers are substantial. AWS expects 2026 capital expenditure to reach $200 billion, more than 50% above 2025's $132 billion. Microsoft reported quarterly capex of $37.5 billion, up $15 billion year on year. Google raised its 2026 guidance to between $175 billion and $185 billion, more than double the prior year.
Omdia forecasts 27% growth in global cloud infrastructure spending for 2026, with differentiation increasingly shaped by infrastructure scale, capital efficiency and AI agent platform capabilities rather than raw compute alone.
For cloud vendors, the challenge is no longer just about scaling capacity quickly enough to meet surging demand, but about doing so with discipline across investment pace, resource allocation, and global operational efficiency.
The competitive landscape is shifting toward the application layer. AWS has introduced productised agent offerings including Kiro, Amazon Quick, Transform and Connect. Microsoft extended Azure Copilot into cloud operations and application modernisation workflows. Google Cloud strengthened Vertex AI with tool governance and provisioned throughput for high-concurrency deployments.
For enterprise customers, the key question is whether these capabilities can be embedded into existing systems, workflows, and data environments, and then scaled reliably in production.
All three hyperscalers reported backlog growth. AWS ended Q4 with $244 billion in backlog. Google Cloud's total backlog rose sharply to $240 billion from $157.7 billion in Q3. AWS stated that Amazon Bedrock had reached a multi-billion-dollar annualised run rate, with customer spending increasing 60% quarter on quarter.
