BUSINESS | Alibaba Cloud Asia-Pacific market share grows in 2025

Alibaba Cloud retained its position as the largest Infrastructure-as-a-Service (IaaS) provider in Asia Pacific by revenue in 2025, increasing its regional market share to 22.5%, according to a Gartner report released April 10, 2026.

The cloud unit of Alibaba Group reported growth from 20.8% in 2024, reflecting rising demand for AI-driven workloads across the region. The report, “Market Share: IaaS, Worldwide, 2025,” noted that global IaaS revenue expanded significantly, driven largely by artificial intelligence adoption.

Alibaba Cloud also expanded its global footprint, ranking as the world’s fourth-largest IaaS provider with a 7.7% market share in 2025, up from 7.2% the previous year.

Regionally, the company maintained its lead in mainland China and Hong Kong. It ranked second in Malaysia and Indonesia, and third in Singapore, where it recorded triple-digit year-on-year growth.

Gartner reported that the IaaS market grew by $45 billion in 2025, with a 24.3% growth rate, as AI-native workloads became the primary driver of new demand. The report added that hyperscalers and emerging cloud providers benefited from increased demand for AI-optimized infrastructure and sustained usage of cloud-based computing resources.

The study also highlighted how fragmented AI systems, data localization requirements, and regulatory factors are reinforcing the role of IaaS as a central layer for managing and deploying workloads across environments.

Alibaba Cloud has been expanding its infrastructure to support AI adoption, with 78 data centers across Asia. The company offers compute, storage, networking, and security services, along with AI models and tools aimed at enterprise deployments.

The growth underscores intensifying competition in the global cloud market as providers scale infrastructure to meet increasing AI demand.