Alibaba retains top spot as Asia Pacific’s largest cloud provider by revenue as market share grows
Alibaba Cloud’s share of the Asia Pacific Infrastructure-as-a-Service (IaaS) market rose to 22.5% in 2025, up from 20.8% a year earlier, cementing its position as the region’s largest cloud provider by revenue, according to the latest Gartner® report, Market Share: IaaS, Worldwide, 2025, published on 10 April 2026.
Across the region, the company retained its market-leading position by revenue in mainland China and Hong Kong, held second place in both Malaysia and Indonesia, and climbed to third place in Singapore — where it was the only global leading player to achieve triple-digit year-on-year growth. The performance reflects sustained investment in AI-optimised infrastructure and a strategic focus on enterprise AI needs, Alibaba Cloud said.
Globally, Alibaba Cloud remained the world’s fourth-largest IaaS provider by revenue, with its worldwide market share rising to 7.7% from 7.2% in 2024.
AI-driven demand accelerates cloud infrastructure growth
The broader market is being reshaped by artificial intelligence. Gartner reports that the global IaaS market added $45 billion in revenue in 2025, representing a growth rate of 24.3%, which outpaced 2024. “AI-native workloads became the dominant source of net-new demand,” the report states, with hyperscalers and neocloud providers capturing multibillion-dollar revenue increases driven by AI-optimised infrastructure and higher utilisation intensity from persistent runtime consumption.
The research also highlights that “fragmented AI stacks, data gravity, and regulatory requirements reinforced IaaS as the unifying layer for portability and orchestration, while sovereign and industry-aligned offerings expanded the addressable market beyond global hyperscalers.”
Alibaba Cloud’s own growth is underpinned by what its chief technology officer, Dr Li Feifei, described as an “AI-native and agent-native cloud strategy”. He said: “A lot of companies talk about AI infrastructure, model serving and agentic architecture. What the numbers show is that customers in this region are making real choices, and they’re choosing Alibaba Cloud. That commitment and trust are the result of years of building capacity ahead of demand.”
The company has committed substantial capital to back its ambitions, pledging at least RMB 380 billion (US$53 billion) over three years starting in 2025 to scale AI capabilities and cloud infrastructure. Alibaba Cloud’s AI-related product revenue has already recorded consecutive quarters of triple-digit growth, driven by demand for high-performance infrastructure and value-added applications. Its Qwen AI app has also been integrated with the group’s e-commerce platform Taobao to enhance user experience and drive consumer demand.
On the infrastructure side, Alibaba Cloud operates 78 data centres in Asia alone, as part of a global network of 87 availability zones across 29 regions. Recent expansions include new data centres in Malaysia and plans for one in the Philippines, alongside existing facilities in Thailand, Mexico and South Korea.
Its Qwen family of large language and multimodal AI models — including Qwen2.5 and Qwen3 — is available to developers as open-weight models via HuggingFace and ModelScope, supporting multiple languages and modalities such as text, vision and audio. As of 31 October 2025, more than 180,000 derivative models had been built on Qwen models through Hugging Face. In Singapore, Alibaba Cloud has also established a Global AI Competency Center to accelerate AI adoption and provide access to models and computing resources.
The Asia Pacific cloud computing market, valued at an estimated USD 202.7 billion in 2025, is projected to reach USD 679.8 billion by 2032, at a compound annual growth rate of 18.9%, according to market forecasts cited in the research briefing. China accounts for the largest single share — 40% — while India is the fastest-growing market in the region. Key competitors in the region include AWS, Microsoft Azure, Google Cloud and Tencent Cloud, with demand increasingly driven by hybrid cloud architectures and government initiatives.
Alongside the technology race, geopolitical factors and the push for digital independence are fuelling rising sovereign cloud spending, a trend that is reshaping the IaaS landscape as providers tailor offerings to meet national regulatory requirements.
