Enterprises like cloud services. Cloud services spending, according to Synergy Research Group, rose more than $43 billion from the second quarter of 2025 to reach $143 billion.

The research firm noted that the year-on-year growth rate increased for the 11th successive quarter, reaching 43%, the highest in the last eight years.

Driven by GenAI, which was launched before growth rates began to increase, the market has doubled in size over ht last 11 quarters.

“The accelerated cloud growth rate over the last three years, and in particular over the last four quarters, has been quite remarkable,” said John Dinsdale, chief analyst at Synergy Research Group. “AI technology has lit a fire under the cloud market and is now driving unprecedented growth. GenAI-specific cloud services are growing at 165% year over year, but equally importantly, AI technology is enabling enhanced functionality and increased growth across a much broader range of cloud services.”

Among the top three players—Amazon, Microsoft, and Google—worldwide market share was 28%, 20%, and 15%, respectively.

Tier two cloud providers also continue to make progress, with CoreWeave, OpenAI, Oracle, Crusoe, Nebius, Anthropic and Nscale seeing the highest growth rates.

Based on cloud infrastructure service revenues, nine neocloud companies are now among the top 40 cloud providers.

Now that the top cloud providers have released their Q2 earnings, Synergy estimates that quarterly cloud infrastructure service revenues (including IaaS, PaaS, and hosted private cloud services) were $143.4 billion, with trailing twelve-month revenues reaching $500 billion.

Public IaaS and PaaS services, which grew by 47% in the second quarter, account for a large portion of this market. In the public cloud segment, major cloud providers remain the dominant players, with the top three accounting for 67% of the market.

U.S. dominates growth

According to Synergy’s data, the cloud market continues to grow strongly in all regions.

The largest countries with the strongest growth included India, Indonesia, Ireland, Thailand, and Malaysia, all growing at rates well above the worldwide average.

In Europe, the largest cloud markets are the U.K. and Germany, but the fastest-growing markets were Ireland, Norway, Denmark, and Finland.

While the cloud market continues to grow across all regions, the U.S. remains the largest. Synergy Research noted that the U.S. market’s scale far surpasses that of the entire Asia Pacific region.

During the second quarter, the U.S. market grew by 49%, well above the worldwide average.

“In the last two quarters, the U.S. share of the worldwide market has increased, reflecting the huge buildout of U.S. infrastructure by both hyperscale cloud operators and neoclouds,” Dinsdale said.

For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.