Cloud revenues up 35% YoY in a hot market that's accelerating | Computer Weekly

"The market is accelerating quickly - possibly driven by AI deployments - when comparing run rate with actual trailing 12-month revenues. Q1 2026 was the ninth successive quarter in which YoY growth increased, attaining 35%."

"According to the Synergy data, cloud service revenues have hit their highest growth rate since the fourth quarter of 2021, when the market was 40% of its current size. That swelling of revenues could be down to AI driving major changes in the cloud market."

"With historical - i.e. trailing 12-month revenues of $455bn - and a run rate of $514.4bn calculated from this year's Q1, the $59.4bn difference shows how quickly the market is accelerating, equating to an acceleration delta of 13%."

In Q1 2026, cloud service provider revenues increased by $35bn year-on-year, totaling $129bn. This growth marks the ninth consecutive quarter of rising year-on-year growth, reaching 35%. The hyperscalers, led by Amazon, dominate the market, while Microsoft and Google show higher growth rates. Tier two providers like CoreWeave and OpenAI also exhibit significant growth. Quarterly cloud infrastructure service revenues were estimated at $128.6bn, with trailing 12-month revenues at $455bn, indicating a rapid market acceleration.

Read at ComputerWeekly.com