Cloud spending surges to $330B as AI fuels hyperscaler investments

Data from the Synergy Research Group showed that global cloud infrastructure spending grew by $60 billion year over year, reaching $330 billion in 2024, CIO Dive reports.

The fourth quarter of last year alone contributed $91 billion, driven mainly by generative artificial intelligence, which accounted for half of the $102 billion increase since 2022, when OpenAI introduced ChatGPT. Despite its high costs, AI has driven the demand for cloud services, generating tens of billions of dollars for providers, according to SRG analysts. Amazon Web Services retained its position as the largest cloud provider with a 30% market share and $107.6 billion in revenue, followed by Microsoft at 21% and Google Cloud at 12%. To support AI workloads, these companies invested heavily in data centers, specialized chipsets, and networking infrastructure, collectively exceeding $200 billion in capital expenditures. AWS, Microsoft, and Google Cloud spent $79 billion, $76 billion, and $53 billion, respectively, while Oracle, with a 3% market share, increased its infrastructure spending to $11 billion. The hyperscalers have indicated that they plan to maintain high investment levels to overcome capacity constraints and scale cloud infrastructure.