Alibaba Cloud widens lead in Asia Pacific cloud race as AI demand surges

Your apps, payments, and work tools are increasingly running on a cloud race being reshaped by artificial intelligence, and one company is pulling ahead in Asia Pacific.

Alibaba Cloud, the digital technology and intelligence backbone of Alibaba Group, is the largest Infrastructure-as-a-Service (IaaS) provider by revenue in Asia Pacific, with 22.5% market share in 2025, up from 20.8% in 2024, according to the Gartner® report, Market Share: IaaS, Worldwide, 2025, 10 April 2026.

Alibaba Cloud CTO Dr. Li Feifei said the gains reflect its AI-native and agent-native strategy and long-term investment in capacity ahead of demand. She said customers are not just discussing AI infrastructure, they are actively choosing Alibaba Cloud based on real deployments and outcomes.

Regionally, Alibaba Cloud remained the revenue leader in Chinese Mainland and Hong Kong, ranked second in Malaysia and Indonesia, and rose to third in Singapore, where it was the only major global provider to record triple-digit year-on-year growth.

Globally, it ranked fourth among IaaS providers in 2025, increasing its share to 7.7% from 7.2% in 2024.

The Gartner report said the IaaS market grew 24.3% in 2025, adding $45 billion in revenue, with AI-native workloads driving most new demand as hyperscalers and neocloud providers expanded capacity for always-on computing.

Alibaba Cloud said its AI-driven strategy is supported by 78 data centers across Asia and a full stack of compute, storage, networking, security, and AI models designed for enterprise-scale deployment.

The takeaway is clear. As AI shifts from hype to heavy infrastructure use, cloud leadership is increasingly decided by who can scale fast enough to power it, not just talk about it.