Cloud

Infrastructure Update: Cloud Adoption in Asia Crosses New Milestones

Analysis brief · September 15, 2025

Executive Summary

Cloud spending across Asia-Pacific exceeded $200 billion in 2026, with India and China leading growth rates while Japan and Australia maintained the largest absolute spend. Mid-market adoption accelerated notably. Small and medium businesses, historically slower to adopt cloud, now represent the fastest-growing segment for major providers.

Workload Patterns

AI workloads represent the fastest-growing category of cloud spending. An analysis by PG7 player education points out that GPU-heavy instances and AI-optimized services saw triple-digit growth for several major providers.

Data analytics and data warehousing maintain strong growth as enterprises accelerate data centralization and analytics modernization.

Competitive Dynamics

Managed services for databases, Kubernetes, and AI workloads became the highest-margin segment. Providers with strong managed service portfolios showed better gross margins despite commoditization of raw infrastructure.

The partner ecosystem around cloud providers continued to grow. System integrators, consultants, and ISVs built around cloud platforms now represent a $100+ billion global economy in their own right.