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According to new data from Synergy Research Group, enterprise spending on cloud infrastructure services reached $143.4 billion in the second quarter of 2026
In sum – what to know:
AI momentum – Enterprise spending on cloud infrastructure services reached $143.4 billion in Q2, growing 43% year on year, the market’s fastest expansion in eight years.
Hyperscaler leadership – AWS, Microsoft, and Google retained the top three positions with a combined 63% market share, while neocloud providers continued gaining scale.
U.S. expansion – AI infrastructure investment boosted U.S. cloud market growth to 49%, with hyperscalers and neoclouds accelerating capacity deployments.
Artificial intelligence infrastructure continues to reshape the cloud market, driving record spending as hyperscalers and neocloud providers expand data center capacity to support accelerating enterprise AI adoption.
According to new data from Synergy Research Group, enterprise spending on cloud infrastructure services reached $143.4 billion in the second quarter of 2026, up more than $43 billion from the same period last year. The market grew 43% year on year, marking the highest annual growth rate in eight years and the eleventh consecutive quarter of accelerating expansion. Over that period, the market has doubled in size.
Synergy said the rapid adoption of generative AI has been the primary catalyst behind the sustained acceleration in cloud demand since late 2023.
Among the leading cloud providers, Amazon Web Services retained the largest share of the global market with 28%, followed by Microsoft at 20% and Google Cloud at 15%. While AWS maintained its leadership position, Microsoft and Google continued to post faster growth rates, according to the report.
The research also highlighted the continued emergence of neocloud providers. Based on cloud infrastructure service revenue, nine neocloud companies now rank among the world’s top 40 cloud providers. Synergy identified CoreWeave, OpenAI, Oracle, Crusoe, Nebius, Anthropic, and Nscale among the fastest-growing second-tier providers.
“AI technology has lit a fire under the cloud market and is now driving unprecedented growth,” said John Dinsdale, chief analyst at Synergy Research Group. He noted that GenAI-specific cloud services are growing at 165% year over year, while AI capabilities are also boosting demand across a much broader range of cloud services. Dinsdale added that the U.S. has increased its share of the global cloud market over the past two quarters, reflecting the rapid expansion of infrastructure by hyperscale cloud operators and neocloud providers.
Synergy estimates that trailing twelve-month cloud infrastructure service revenues have now reached $500 billion. Public infrastructure-as-a-service (IaaS) and platform-as-a-service (PaaS) offerings accounted for most of the market and expanded 47% year on year during the quarter. Within the public cloud segment, the three largest providers controlled 67% of total revenue.
Geographically, cloud spending continued to expand across all regions. When measured in local currencies, India, Indonesia, Ireland, Thailand, and Malaysia recorded growth well above the global average. The U.S. market grew 49%, significantly outpacing worldwide growth, while Ireland, Norway, Denmark and Finland ranked among Europe’s fastest-growing cloud markets.
