Alibaba Cloud, the cloud computing subsidiary of Chinese giant Alibaba Group, continued as the largest Infrastructure-as-a-Service (IaaS) provider by revenue in the Asia-Pacific region, increasing its market share to 22.5% in 2025 from 20.8% in 2024.

The report “Market Share: IaaS, Worldwide, 2025,” released by the United States-based market research Gartner in early April, indicates that the company maintained its leading position across several regional markets. It ranked first by revenue in mainland China and Hong Kong, second in Malaysia and Indonesia, and third in Singapore, where it recorded triple-digit year-on-year growth.

Globally, Alibaba Cloud remained the fourth-largest IaaS provider by revenue in 2025, with its market share rising to 7.7%, up from 7.2% the previous year.

According to Gartner, the global IaaS market grew by $45 billion in 2025, representing a 24.3% increase. The report attributes much of this growth to demand for AI-related workloads, which became a primary driver of new spending. It also notes that factors such as fragmented AI systems, regulatory requirements, and data management challenges have reinforced the role of IaaS as a central layer for cloud operations.

Alibaba Cloud’s performance reflects broader regional trends, particularly the expansion of AI-driven infrastructure and services. The company has invested in infrastructure to support large-scale AI workloads and reported operating 78 data centers across Asia.

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