Summary of Key Points
This news article focuses on the cloud computing industry, highlighting the following key developments: The emergence of large AI models has led to an unprecedented demand for computing power globally, transforming cloud computing from a tool for supporting corporate digitalization to a driver of industrial intelligence. Both the Chinese and global cloud computing markets are experiencing rapid growth, with China expected to reach 2.5 trillion yuan by 2029 and the global market exceeding 1.6 trillion US dollars. Countries around the world are competing to secure their positions in this industry, leading to a reshuffle of the competitive landscape. China's cloud computing sector has three main drivers for growth: public cloud, intelligent computing cloud, and international expansion (cloud services offered overseas). In the future, cloud computing is expected to become more widespread, intelligent, secure, and will receive strong policy support.
I. Large AI Models as the “Engine” Behind the Growth of Cloud Computing
In the past, cloud computing primarily served to store data in the cloud and perform basic digital tasks (such as online office work). However, with the development of large AI models that require massive amounts of computing power (for example, training ChatGPT can cost hundreds of millions of dollars), it has become essential for companies to rent computing resources from cloud service providers rather than purchasing their own servers. As a result, the value of cloud computing has shifted from providing backend support to driving frontline applications, such as intelligent customer services and AI-driven design processes. This is similar to how renting a warehouse has evolved from simply storing goods to enabling production activities, significantly increasing efficiency.
II. Rapid Growth in Global and Chinese Cloud Computing Markets
- Chinese Market: The market size reached 1.07 trillion yuan in 2025, with a year-on-year increase of 29%, and is expected to exceed 2.5 trillion yuan by 2029. This growth is driven by the “14th Five-Year Plan” aimed at developing a digital economy and building a nationwide integrated computing network, as well as the increasing demand for intelligent computing resources required by large AI models.
- Global Market: The global cloud computing market was valued at 823 billion US dollars in 2025, expected to exceed 1 trillion US dollars by 2027 and reach over 1.6 trillion US dollars by 2029. This amount is higher than the GDP of many countries.
- Market Segments: Cloud computing can be categorized into three types: IaaS (renting hardware such as servers and storage, similar to renting a factory space), PaaS (renting development platforms, similar to renting production lines), and SaaS (using ready-made software, similar to buying finished products). Globally, SaaS dominates the market (42%), while in China, PaaS is growing the fastest (67%) due to the need for AI application development. Although IaaS remains the largest segment, its growth rate has slowed down (24%).
III. A Rebalancing of the Global Cloud Computing Landscape
Countries are competing to dominate the cloud computing sector as a strategic digital asset:
- United States: The US is relaxing energy restrictions on data centers (which consume a lot of power) and selling comprehensive “cloud + AI” technology to its allies to maintain its leading position.
- European Union: The EU aims to triple its data center capacity within five years to reduce dependence on the US and meet domestic demand independently.
- Asia-Pacific Countries: Nations such as Japan, South Korea, and India are investing heavily in computing infrastructure to become regional centers for cloud computing services.
- Tech Companies: Amazon and Microsoft hold nearly 30% of the global market share. Google, Oracle, and IBM are gaining momentum through AI-specific cloud solutions and hybrid cloud models (a combination of on-premises servers and public cloud services).
IV. Three Growth Drivers for China’s Cloud Computing Industry
China’s cloud computing industry has three main growth areas:
1. Public Cloud: From selling hardware resources (such as servers) to providing specialized services (e.g., AI model training and data analysis), shifting the focus from selling raw materials to offering value-added solutions.
2. Intelligent Computing Cloud: Cloud services dedicated to AI, which will become the core for intelligent applications, allowing companies to leverage AI capabilities without investing in proprietary technology.
3. International Expansion: Focusing on markets in the Asia-Pacific region (e.g., Southeast Asia) and Middle East (e.g., Saudi Arabia), with Europe, Latin America, and Africa as secondary targets. The cloud computing revenue in the Asia-Pacific region increased by 33% in 2025, making it the primary market for Chinese cloud companies looking to expand overseas.
V. The Future of Cloud Computing
Cloud computing is expected to become more ubiquitous, user-friendly, efficient, secure, and interoperable across different platforms. Policy support will play a crucial role in this transformation, with the “14th Five-Year Plan” emphasizing the development of the cloud computing industry, as well as domestic software solutions (operating systems, databases) and industrial software (research and development, production control). This includes providing financial and regulatory incentives to foster innovation and growth.
In summary, cloud computing has become an essential infrastructure in the AI era, just like electricity and water. It is indispensable for both corporate digitalization efforts and national strategies to gain a competitive edge in the digital economy. The industry is expected to continue to grow rapidly in the coming years, with more ordinary people benefiting from cloud computing services such as AI-powered chatbots and intelligent navigation systems.