Alibaba Cloud has reinforced its position as the leading Infrastructure-as-a-Service (IaaS) provider in Asia Pacific, capturing a 22.5% market share in 2025—up from 20.8% the previous year—according to the latest report from Gartner.
The growth highlights Alibaba Cloud’s aggressive push into AI-native and agent-driven cloud infrastructure, as enterprises across the region accelerate adoption of artificial intelligence workloads. The company attributes its performance to sustained investments in AI-optimized data centers, scalable compute, and integrated AI tools designed to support large-scale deployments.
Regionally, Alibaba Cloud maintained its top position in mainland China and Hong Kong, while strengthening its footprint across Southeast Asia. It ranked second in Malaysia and Indonesia, and climbed to third place in Singapore—where it recorded triple-digit year-on-year growth, underscoring increasing demand in one of the region’s most competitive cloud markets.
Globally, Alibaba Cloud retained its position as the fourth-largest IaaS provider, increasing its worldwide market share to 7.7% in 2025. The broader cloud infrastructure market saw rapid expansion, with Gartner reporting a 24.3% growth rate and $45 billion in new revenue—largely driven by AI-native workloads and increased demand for high-performance computing environments.
Industry analysts note that AI is reshaping cloud adoption patterns, with enterprises prioritizing platforms that can handle persistent, large-scale workloads. Factors such as data gravity, regulatory requirements, and fragmented AI stacks are also reinforcing the role of IaaS as a foundational layer for orchestration and portability.
Alibaba Cloud’s strategy centers on delivering end-to-end AI capabilities, from infrastructure to model deployment. The company now operates 78 data centers across Asia, providing enterprises with the compute power, storage, networking, and security required to run AI applications in production environments.
As competition intensifies among global hyperscalers, Alibaba Cloud’s continued expansion signals a broader shift toward AI-first cloud ecosystems—where infrastructure is increasingly optimized not just for storage and compute, but for intelligent, always-on workloads.
