Generative AI fueled $60B boost in enterprise cloud spend last year

As generative AI tools boosted cloud consumption, hyperscalers mounted a rapid response, increasing infrastructure investments to support the technology. 

Global cloud spending increased by $60 billion year over year to $330 billion in 2024, according to Synergy Research Group data. The market for cloud infrastructure services increased to $91 billion during the fourth quarter, up $17 billion from the prior year. 

Generative AI was a major mover, accounting for roughly half of the $102 billion the market has added since 2022, the year OpenAI released ChatGPT, SRG Chief Analyst John Dinsdale said. “The technology might be expensive, but it is creating new services that are bringing in tens of billions of dollars for the cloud providers,” he said in the report. 

AWS continued to dominate cloud in 2024, ending the year with a 30% share of the global market and $107.6 billion in revenues. Microsoft and Google Cloud remained the second and third largest providers, with 21% and 12% of the global market, according to SRG. 

AWS, Microsoft and Google committed tens of billions of dollars to data centers, high-performance chipsets and networking gear optimized for AI workloads. Total capital investments among the three providers surpassed $200 billion last year, with the majority going toward cloud infrastructure, according to SRG. 

Hyperscaler capital investments fell roughly in line with market share. AWS, Microsoft and Google cloud spent $79 billion, $76 billion and $53 billion, respectively, according to SRG. Oracle, in contrast, maintained a 3% market share while upping its infrastructure spend to $11 billion, from $7 billion in 2023. 

The three largest players signaled their intention to maintain high levels of investment in an ongoing effort to relieve capacity constraints as customers migrate new workloads to cloud, expand existing deployments and build out AI use cases. 

Scaling capacity despite energy and supply chain constraints is the key to maintaining market positions that have been largely stable over the last several years.