Cloud Infrastructure Services Market Size

Global Cloud Infrastructure Services Market size was valued at USD 125.2 billion in 2023 and is poised to grow from USD 143.35 billion in 2024 to USD 423.5 billion by 2032, growing at a CAGR of 14.5% during the forecast period (2025-2032). 

Hybrid cloud deployments are among the main drivers contributing to growth within the global market for cloud infrastructure services. Through demands for flexibility, scalability, and cost-saving measures, organizations increasingly look for an appealing offering with the benefit of both the public and private cloud environments as presented by hybrid clouds. This strategy allows organizations to maintain sensitive and critical workloads on private clouds and utilize public cloud infrastructure for non-sensitive applications, thus maximizing the use of resources and operational efficiency. The increasing demand for business continuity, data sovereignty, and regulatory compliance is fueling the shift towards hybrid cloud models, leading to continuous demand for cloud infrastructure services.

The increasing demand for robust data security is key trends driving the cloud infrastructure services sector. As organizations more and more migrate sensitive data and mission-critical applications to the cloud, data breach, cyber-attacks, and regulatory compliance issues are at an all-time high. Consequently, companies are focusing on sophisticated security features such as end-to-end encryption, secure access controls, and multi-factor authentication. Cloud vendors, aware of these issues, are investing large amounts in the creation of highly secure features, such as improved firewalls, intrusion detection tools, and compliance certifications. Such increased emphasis on data security retains customer confidence and further boosts demand for secure cloud infrastructure services.

How do AI-Optimized Cloud Platforms Contribute to Market Growth?

AI is having a profound impact on the Global Cloud Infrastructure Services Market by enhancing automation, efficiency, and scalability. With more companies embracing AI-based solutions, they need stronger and more adaptable cloud infrastructure to manage sophisticated workloads, including machine learning algorithms, big data processing, and real-time decision-making applications. This increased need for AI functionalities fuels the demand for advanced cloud infrastructure services with high-performance computing, storage, and processing capabilities. A related trend is the emergence of AI-optimized cloud platforms, wherein cloud providers provide customized services that ease AI model training and deployment, which will further drive market growth.

In March 2025, CoreWeave, a cloud infrastructure provider with GPU acceleration, struck a major $1.7 billion deal for acquiring AI platform builder Weights & Biases. The move further strengthens CoreWeave's position in building and training machine learning models. CoreWeave also signed a five-year, $12 Billion cloud-computing deal with OpenAI, reflecting the heightened demand for tailored AI infrastructure.