Cloud spending is expected to reach a staggering $723 billion in 2025, driven in part by the explosive demand for AI resources. This represents a 21.4% increase from 2024, with cloud application services accounting for approximately $300 billion of this spending.
The growing reliance on cloud services across industries is fueling this growth, with AI adoption being a key driver. The use of AI technologies in IT and business operations is accelerating the role of cloud computing in supporting business operations and outcomes.
Cloud application services are expected to grow from $250.8 billion in 2024 to $299.1 billion in 2025, while spending on cloud system infrastructure services is expected to reach $211.9 billion by 2025. Hybrid cloud is also expected to become the norm, with 90% of organizations adopting hybrid cloud deployments by 2027.
The intersection of AI and cloud is creating new opportunities for businesses to innovate and scale. As AI continues to advance, we can expect to see even more significant investments in cloud infrastructure to support AI workloads.
