Alibaba Cloud’s China IaaS share hits 32.8% on AI demand
Alibaba Cloud’s China share hitting 32.8%. Revenue growth outpaces the national market. The driver is the same everywhere: AI-native infrastructure demand.
Alibaba Cloud’s China IaaS share rose from 30.1% to 32.8% in 2025, a 2.7 percentage point gain.
China revenue grew 34.4% YoY, more than 10 percentage points above the national market rate.
Global IaaS reached $222.2B; Alibaba Cloud’s worldwide share climbed from 7.2% to 7.7%.
Implied global revenue is roughly $17.1B, placing Alibaba Cloud at #4 behind AWS, Azure, and Google Cloud.
Gartner identifies AI-native workloads as the primary new demand source for IaaS capacity globally.
The global cloud infrastructure market has crossed $222B, and the growth engine is no longer enterprise digitalisation. According to Gartner’s 2025 IaaS market share data, Alibaba Cloud extended its lead in China, accelerated in Asia-Pacific, and gained ground globally. Revenue grew at roughly 35% in a market expanding at 25%.
The pattern signals a phase transition in how cloud market share is won. Scale and full-stack AI capability are compounding faster than at any prior point in the cycle.
China market: a structural lead extends
Alibaba Cloud’s China IaaS share reached 32.8% in 2025, up from 30.1% in 2024. The 2.7 percentage point gain widens the lead over the next tier of Chinese cloud providers.
Revenue growth of 34.4% YoY placed Alibaba Cloud more than 10 percentage points above the Chinese IaaS market’s 23.4% overall expansion.
The competitive context is real. Huawei Cloud, Tencent Cloud, and Baidu AI Cloud all compete at scale. Huawei in particular is investing heavily in AI infrastructure tied to its own chip and software stack.
The advantage sits in AI-native infrastructure: GPU clusters, model serving capacity, AI-optimised networking, and integrated tooling. Alibaba Cloud’s Tongyi model family and DAMO Academy research arm support a vertically integrated stack that pure-play infrastructure vendors cannot match.
Asia-Pacific: a $75.2B market with a clear leader
The Asia-Pacific IaaS market reached approximately $75.2B in 2025, growing 25.3% YoY. Alibaba Cloud’s regional share rose from 20.8% to 22.5%, implying roughly $16.9B in APAC IaaS revenue.
Alibaba Cloud’s Southeast Asia infrastructure, anchored by data centres in Singapore, Indonesia, and Malaysia, positions it as a credible local alternative to US hyperscalers. AI demand is amplifying the advantage. Regional enterprises often prefer providers with proximity and local compliance familiarity.
