Alibaba Cloud tightens grip on Asia Pacific IaaS market as AI demand reshapes the rankings

The company now commands 22.5% of the region's cloud infrastructure market by revenue, up from 20.8% a year earlier.

Alibaba Cloud has extended its lead as Asia Pacific's largest cloud Infrastructure-as-a-Service provider by revenue, with its regional market share climbing to 22.5% in 2025, according to the latest Gartner report on worldwide IaaS market share.

The year-on-year gain from 20.8% comes as AI-native workloads increasingly drive infrastructure buying decisions across the region, reinforcing Alibaba Cloud's push to position itself squarely at the intersection of cloud and AI.

Globally, the company held its rank as the world's fourth largest IaaS provider by revenue, with its worldwide share ticking up to 7.7% from 7.2% in 2024. Gartner's report noted that the IaaS market added US$45 billion in revenue last year, representing 24.3% growth–outpacing 2024–with AI-optimized infrastructure and higher utilization intensity cited as the primary drivers of net-new demand.

"A lot of companies talk about AI infrastructure, model serving and agentic architecture. What the numbers show is that customers in this region are making real choices, and they're choosing Alibaba Cloud," said Li Feifei, chief technology officer of Alibaba Cloud.

"That commitment and trust are the result of years of building capacity ahead of demand.”

The company's performance across individual markets within the region reinforced the overall trend. Alibaba Cloud maintained its top position by revenue in the Chinese Mainland and Hong Kong, held second place in Malaysia, rose to second in Indonesia, and climbed to third in Singapore, where it was also the only provider among global leading players to record triple-digit year-on-year growth.

That Singapore figure is particularly notable given how competitive the city-state's cloud market has become, with hyperscalers, regional players and a growing cohort of neocloud providers all competing for the same enterprise wallet.

Underpinning the market share gains is a network of 78 data centres across Asia, through which Alibaba Cloud delivers compute, storage, networking and security capabilities designed for large-scale AI deployments. The company's Qwen family of large language and multimodal models–available to developers through HuggingFace and ModelScope–forms part of a broader AI services stack it is pitching to enterprises across the region.

Gartner's report also flagged that fragmented AI stacks, data gravity, and regulatory requirements are reinforcing IaaS as the unifying layer for portability and orchestration, while sovereign and industry-aligned cloud offerings are expanding the addressable market beyond global hyperscalers.

That dynamic arguably favours providers with deep regional infrastructure commitments, which helps explain why Alibaba Cloud's share trajectory in Asia Pacific continues to diverge from its global standing.