Public cloud services spending worldwide is projected to hit $723.4 billion in 2025, a significant increase from $595.7 billion in 2024, according to a forecast by research and consulting firm Gartner, Inc. This growth shows the expanding use of cloud technologies in supporting business operations.
“The use of AI technologies in IT and business operations is unabatedly accelerating the role of cloud computing in supporting business operations and outcomes,” said Sid Nag, VP Analyst at Gartner. “Cloud use cases continue to grow, focusing on hybrid, distributed, and multicloud environments supported by cross-cloud frameworks, driving a 21.5% growth in 2025.”
Cloud Infrastructure and Platform Services (CIPS) offerings are expected to attract significant attention due to their ability to integrate infrastructure and platform capabilities seamlessly. Gartner predicts spending on CIPS will grow by 24.2% in 2025, reaching $301 billion and accounting for 72% of IT investments in Infrastructure-as-a-Service (IaaS) and Platform-as-a-Service (PaaS).
“Organizations are choosing CIPS because workloads of today are complex, and organizations are seeking integrated platforms to simplify development, deployment, and operations,” Nag said.
Hybrid cloud approaches are also on the rise. By 2027, 90% of organizations are expected to adopt hybrid models, emphasizing the need for better synchronization across systems. Gartner noted that addressing data synchronization challenges will be critical for implementing generative AI solutions in hybrid cloud environments.
As businesses continue to prioritize advanced AI workloads and cross-cloud integration, the demand for public cloud services is expected to grow across all segments, further solidifying the cloud’s central role in IT strategies.