Enterprise cloud spending in the first quarter of 2026 rose to $129 billion, rising by 35 percent Year-on-Year (YoY) and marking the ninth consecutive quarterly growth increase, according to new findings from Synergy Research Group.

This is the highest growth rate since Q4 2021, when the market was just 40 percent of its current size.

Synergy said Amazon maintains a strong lead in this market at 28 percent, but Microsoft (21 percent) and Google (14 percent) are seeing higher growth rates.

Tier two cloud providers also saw high growth rates, with CoreWeave, OpenAI, Oracle, Crusoe, Nebius, Anthropic, and ByteDance taking the lead.

Based on earnings data from the major cloud providers, Synergy estimated quarterly cloud infrastructure service revenue had reached $128.6 billion, with trailing 12-month revenues at $455 billion.

Public Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS) were the bulk of the market, growing by 38 percent in Q1. The top three cloud providers currently account for 67 percent of the public cloud market.

According to Synergy’s data, growth is strong worldwide, with India, Indonesia, Ireland, Taiwan, Thailand, and Malaysia growing above the world average. The US, however, remains the largest market, surpassing the entirety of APAC and growing by 37 percent in Q1.

The UK and Germany retained their spots as the largest cloud markets in Europe, but Ireland, Norway, and Poland saw the highest growth rates.

“The Q1 market is now fifteen times larger than it was a decade ago and continues to expand at 35 percent annually. Reaching a half-trillion-dollar run rate underscores the far-reaching impact of cloud computing and AI on the IT landscape,” said John Dinsdale, chief analyst at Synergy Research Group.

“Our forecasts point to sustained strong growth in the years ahead, with AI continuing to drive usage, unlock new use cases, and boost cloud provider revenues. At the same time, the competitive landscape is evolving, with neoclouds playing an increasingly significant role - already accounting for 5 percent of the total cloud market and a substantially larger share of AI-focused segments.”