Worldwide spending on cloud infrastructure services reached $168 billion in the third quarter, up 55% from a year earlier, according to Synergy Research Group data.
The market has doubled in eight quarters, and AI-specific services now account for roughly one-third of total cloud revenue, with growth accelerating for a 12th consecutive quarter and the trailing-12-month total reaching about $558 billion.
Synergy chief analyst John Dinsdale attributed the surge to three factors:
- New capacity coming online
- Higher pricing
- And a shift toward costlier AI services
"A lot of the additional capacity that is coming online is specifically targeting more valuable, higher-priced AI services," Disndale said.
Amazon held the largest share of cloud infrastructure revenue at 26%, followed by Microsoft at 19% and Google at 16%.
That said, Microsoft and Google grew faster than Amazon, while Oracle and neocloud providers CoreWeave, Crusoe and Nebius ranked among the fastest-growing outside the top three; AWS revenue itself grew 39% year over year.
JLL data cited in the report showed hyperscalers accounted for 59% of North American data center tenant demand, with 28 gigawatts of owner-occupied capacity under construction, while neoclouds and AI companies represented 11% and 7% of demand respectively.
CBRE figures showed 7,481 megawatts under construction across eight primary North American markets in the first half of the year, up 24.8% from a year earlier, with more than 80% preleased; Dell'Oro Group projects global data center capital spending will exceed $3 trillion by 2030.
Dinsdale said he expects infrastructure and contracts to find new owners if neocloud providers consolidate or fail: "I don't imagine too many stranded assets being trashed."
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