Enterprise spending on cloud infrastructure services is growing at the fastest rate seen in three years, according to data from Synergy Research Group.

This quarter saw $7.5bn more spending on the cloud compared to the previous quarter, and has grown 28 percent compared Year-on-Year (YoY).

It is also the eighth consecutive quarter of increasing YoY growth, and the highest in three years.

According to Synergy, a major driver is generative AI, with Amazon leading the pack. Synergy noted, however, that Microsoft and Google are still achieving higher growth rates separately.

The relatively low growth rate was noted by AWS in its recent earnings call, having received questions about the variance to other hyperscalers in the previous quarter.

CEO Andy Jassy told analysts: "It’s very different having 20 percent year-over-year growth on a $132 billion annualized run rate than to have a higher percent growth rate on a meaningfully smaller annual revenue, which is the case with our competitors."

AWS revenue for Q3 was $33 billion, up from $30.9bn in Q2. In comparison, Google Cloud saw revenues of $15.2bn for this quarter, up 34 percent YoY, while Microsoft's overall cloud revenue was $49.1bn, up 25 percent, while Intelligent Cloud (including Azure) brought in $30.9bn, up 27 percent.

AWS, Microsoft, and Google, respectively, have a market share of 29 percent, 20 percent, and 13 percent.

According to Synergy, the tier two providers seeing the fastest growth include CoreWeave, OpenAI, Oracle, Databricks, and Huawei. OpenAI and Databricks are not typically identified as neoclouds, and simply use cloud providers - including CoreWeave.

In total, Synergy estimates IaaS, PaaS and hosted private cloud infrastructure for the quarter was around $106.9bn, with trailing twelve-month revenues reaching $390 billion. PaaS and IaaS made up the bulk of this. Not all quarterly earnings have been released at this time, though Microsoft, AWS and Google all published theirs at the end of October.

The largest growth rates were seen in India, Australia, Indonesia, Ireland, Mexico, and South Africa, though the US remains the largest overall market. In Europe, the UK and Germany are the biggest, with Spain and Italy seeing the most growth.

“Q3 market numbers were simply very impressive with a record-breaking sequential increase and yet another jump in growth rates,” said John Dinsdale, chief analyst at Synergy Research Group.

“The leading cloud providers all posted strong numbers, while the Chinese market is improving and neocloud companies are now making a real impact on the market. GenAI is driving a lot of the positive metrics, and as one example of that, revenues from GPUaaS are now growing by over 200 percent per year. That all adds up to a surging cloud market which bodes well for the coming years.”

Synergy recently reported that neocloud revenues in the second quarter of 2025 reached $5bn, up 205 percent from the previous year, and are set to reach $23 bn in 2025.