Amazon and Microsoft lead the global cloud market in the beginning of 2025

By Shubhendra Anand , 07 June, 2025

The leaders in the global cloud infrastructure market, AWS and Microsoft, Azure, still dominate the sector with a market share of 31 percent and 20 percent, respectively, in 2025. While the competition is growing fiercer and cloud computing focused on AI is becoming more prevalent, both companies are investing heavily to diversify their offerings while dealing with increased regulations.

With AI-powered model-building and compliance solutions, AWS is aggressively expanding on AI for high-profile financial clients, such as JPMorgan and Bridgewater. On top of that, Amazon has announced a 17.2 million euros AI project to reduce the risk of floods in the Aragon region of Spain, which is also home to its new data centers.

At the same Microsoft is investing 2.8 billion euros into a new data center in Spain, bringing the total investment into the area to almost €9 billion. The tech giant is also making strides into the cloud space. On a more controversial note, Microsoft has recently off-boarded tenure leases with private data center operators, which may indicate a change in infrastructure strategy.

Amazon's AWS was able to show strong results as well. AWS posted a 19 percent increase in revenue in the current financial quarter of 2025. The company has been embedding AI in the company, making it easier to adjust to the new demand for creating AI and ML tools.

Due to the rise in demand for AI-driven cloud services, Amazon and Microsoft are making extensive infrastructure and AI technology expenditures in hopes of becoming long-term market leaders. Still, the cloud industry continues to shift rapidly due to Google's competition, new regulative policies, and many other players within the field.

Even with AWS and Microsoft being dominant, both have to face ever-increasing regulatory oversight. The UK's Competition and Markets Authority (CMA) had opened an inquiry on Microsoft over advanced concerns related to the software's cloud verticals. They believe a pre-existing anxiety enables it to suppress competition. Microsoft has vehemently opposed this investigation, claiming that AI implementations in the cloud market are evolving so rapidly that regulators do not seem to appreciate it.

While having a high market share, AWS has to face plenty of scrutiny in different regions but continues to exercise its cloud dominance worldwide. This stems from worries over its market influence and aggressive pricing strategies, which some analysts suggest raises antitrust concerns.

Currently, both AWS and Azure lead the market and hold an essential role in the future of cloud computing. Still, they constantly grapple with compliance issues, market saturation, and regulation.                              

Global growth trends from first quarter of 2020 to third quarter of 2023: