CloudTech is part of the TechForge Publications seriesView AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsView AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsTechForge SearchNewsCategoriesCloud in ActionCloud MigrationCloud ROI & CostInternal Change ManagementMissteps & LessonsSME & Startup CloudEditorial DeskAnnouncements & AnalysisForecasts & TrendsMigrations: Behind the ScenesTechEx EventsFeaturesInterviewsPodcastsSponsored ContentVideosWebinarsFuture of CloudAI & CloudCloud EthicsEdge & Distributed CloudOpen CloudQuantum & CloudServerless ArchitectureSustainable CloudIndustry PerspectivesEducation & ResearchFinanceHealthcare & Life SciencesLegal & HRMedia, Gaming & CreativePublic SectorRetail & ConsumerMarket IntelligenceCloud StartupsEarnings & Market ShareEvent CoverageMergers & AcquisitionsVendor Roadmaps & LeadershipSecurity, Privacy & TrustCloud CybersecurityCyber Security & Cloud ExpoEncryption & Data PrivacyGovernance, Risk & ComplianceIdentity & AccessStrategy & Decision-MakingChoosing a Cloud StrategyFinOps & BudgetsLock-In & ExitMulti- & Hybrid CloudProcurement & ContractsSkills & HiringTechnology StackBig VendorsContainers & KubernetesDatabases & Data PlatformsInfrastructure as CodeObservability & MonitoringXaaS ModelsEventsResourcesOn-demand WebinarsExclusive VideosPodcastsAll ResourcesMoreAdvertiseAbout UsContact Us SearchNewsCategoriesCloud in ActionCloud MigrationCloud ROI & CostInternal Change ManagementMissteps & LessonsSME & Startup CloudEditorial DeskAnnouncements & AnalysisForecasts & TrendsMigrations: Behind the ScenesTechEx EventsFeaturesInterviewsPodcastsSponsored ContentVideosWebinarsFuture of CloudAI & CloudCloud EthicsEdge & Distributed CloudOpen CloudQuantum & CloudServerless ArchitectureSustainable CloudIndustry PerspectivesEducation & ResearchFinanceHealthcare & Life SciencesLegal & HRMedia, Gaming & CreativePublic SectorRetail & ConsumerMarket IntelligenceCloud StartupsEarnings & Market ShareEvent CoverageMergers & AcquisitionsVendor Roadmaps & LeadershipSecurity, Privacy & TrustCloud CybersecurityCyber Security & Cloud ExpoEncryption & Data PrivacyGovernance, Risk & ComplianceIdentity & AccessStrategy & Decision-MakingChoosing a Cloud StrategyFinOps & BudgetsLock-In & ExitMulti- & Hybrid CloudProcurement & ContractsSkills & HiringTechnology StackBig VendorsContainers & KubernetesDatabases & Data PlatformsInfrastructure as CodeObservability & MonitoringXaaS ModelsEventsResourcesOn-demand WebinarsExclusive VideosPodcastsAll ResourcesMoreAdvertiseAbout UsContact Us Subscribe Subscribe SearchNewsCategoriesCloud in ActionCloud MigrationCloud ROI & CostInternal Change ManagementMissteps & LessonsSME & Startup CloudEditorial DeskAnnouncements & AnalysisForecasts & TrendsMigrations: Behind the ScenesTechEx EventsFeaturesInterviewsPodcastsSponsored ContentVideosWebinarsFuture of CloudAI & CloudCloud EthicsEdge & Distributed CloudOpen CloudQuantum & CloudServerless ArchitectureSustainable CloudIndustry PerspectivesEducation & ResearchFinanceHealthcare & Life SciencesLegal & HRMedia, Gaming & CreativePublic SectorRetail & ConsumerMarket IntelligenceCloud StartupsEarnings & Market ShareEvent CoverageMergers & AcquisitionsVendor Roadmaps & LeadershipSecurity, Privacy & TrustCloud CybersecurityCyber Security & Cloud ExpoEncryption & Data PrivacyGovernance, Risk & ComplianceIdentity & AccessStrategy & Decision-MakingChoosing a Cloud StrategyFinOps & BudgetsLock-In & ExitMulti- & Hybrid CloudProcurement & ContractsSkills & HiringTechnology StackBig VendorsContainers & KubernetesDatabases & Data PlatformsInfrastructure as CodeObservability & MonitoringXaaS ModelsEventsResourcesOn-demand WebinarsExclusive VideosPodcastsAll ResourcesMoreAdvertiseAbout UsContact Us Hamburger Toggle Menu AI & Cloud, FinOps & Budgets, Forecasts & TrendsCloud costs rise as AI moves into core business systemsMuhammad Zulhusni1st April 2026 Share this story: Tags:AIchipscloudcostsnetworkingCategories::AI & CloudFinOps & BudgetsForecasts & TrendsRecent data from Omdia shows that global cloud infrastructure spending reached US$110.9 billion in the fourth quarter of 2025, up 29% year over year.The firm said growth was driven by AI, with demand expanding to storage and networking.Full-year spending reached US$399.6 billion, up 24% year over year.Amazon Web Services, Microsoft Azure, and Google Cloud are seeing increased use tied to AI models that require more compute and network capacity, the company says.Running AI in production requires steady access to high-performance infrastructure.
Models need to process large datasets and respond in near real time.They also need to scale as use grows.These needs push companies to rely more heavily on cloud platforms not on-premise systems.Analysts at Canalys also identify AI as an important driver of recent growth in cloud spending, with demand rising due to increased AI consumption and enterprise adoption.The apparent growth in AI use places pressure on several parts of cloud infrastructure.
Storage needs increase and network use grows as data moves between systems and users.A single AI application can require more resources than a traditional business system.When companies scale these tools in departments, the total demand rises quickly.Cloud providers have been expanding data centre capacity and offering specialised hardware like GPUs and custom chips for AI workloads, though these come at a higher cost.Pricing models are complex, with companies paying for storage, compute, data transfer, model training time, and inference use, making it harder for businesses to predict and control spending.
Companies are committing larger sums to maintain and scale AI systems, so cloud spending becomes part of core operating costs.Omdia expects cloud infrastructure spending to grow by a further 27% in 2026, which would push total annual spending beyond US$500 billion.IT teams now need to monitor use more closely and optimise workloads.They also need to decide where to run different parts of an application.Some are exploring hybrid setups, with certain workloads on private systems and others in the cloud.Higher cloud spending is raising questions about long-term cost management.
AI tools can improve efficiency, but they can also introduce expenses that are hard to track.Companies are looking more closely at how they use cloud resources.This includes which workloads need high-performance infrastructure and which can run on lower-cost systems.
They are also reviewing how use is tracked.Some firms are also reconsidering their cloud strategies by spreading workloads across multiple platforms to lessen dependence on one vendor; the strategy can, however, add complexity.Cloud providers are offering new pricing options and tools to manage costs, including use dashboards, cost alerts, and reserved capacity plans.Cloud as core infrastructureRecent market data indicates that cloud platforms are now crucial to how businesses run modern applications, with cloud companies stating AI acts as a driver of infrastructure demand.As AI spreads in industries, the link between AI adoption and cloud use is likely to grow stronger.The change is redefining what cloud infrastructure is used for, and how much companies are willing to spend on it.See also: Cloud demand shifts toward AI as enterprise use deepensWant to learn more about Cloud Computing from industry leaders? Check out Cyber Security & Cloud Expo taking place in Amsterdam, California, and London.
The comprehensive event is part of TechEx and is co-located with other leading technology events, click here for more information.CloudTech News is powered by TechForge Media.Explore other upcoming enterprise technology events and webinars here.About the Author Muhammad ZulhusniJournalist As a tech journalist, Zul focuses on topics including cloud computing, cybersecurity, and disruptive technology in the enterprise industry.He has expertise in moderating webinars and presenting content on video, in addition to having a background in networking technology.Related Red Hat’s 2026 report exposes the cloud-native security execution gap–and how to close it1st April 2026 Tata SD-WAN for DC connectivity in the AI age31st March 2026 Amazon’s retail stores are starting to run like cloud systems30th March 2026 Oracle introduces “agentic cloud apps” into enterprise workflows26th March 2026 Red Hat’s 2026 report exposes the cloud-native security execution gap–and how to close it1st April 2026 Tata SD-WAN for DC connectivity in the AI age31st March 2026 Amazon’s retail stores are starting to run like cloud systems30th March 2026 Oracle introduces “agentic cloud apps” into enterprise workflows26th March 2026 Join our CommunitySubscribe now to get all our premium content and latest tech news delivered straight to your inbox Click here Popular Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20446 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12601 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 5901 view(s)Big Vendors, Cloud Computing, Market Intelligence5 of the best: cloud technology training platforms 5842 view(s)Cloud ROI & Cost, Interviews, Sponsored Content, Sustainable CloudRipple effect: Xylem’s sustainable water solutions for Europe’s data centres 20446 view(s)Cloud Computing, XaaS ModelsConcern over cloud storage security remains says Spiceworks – but good news for OneDrive 12601 view(s)Big Vendors, Cloud Computing, Cloud Cybersecurity, Market Intelligence, Security, Privacy & Trust10 real-life cloud security failures and what we can learn from them 5901 view(s)Big Vendors, Cloud Computing, Market Intelligence5 of the best: cloud technology training platforms 5842 view(s) See all Latest View All Latest AI & Cloud30th March 2026Amazon’s retail stores are starting to run like cloud systems AI & Cloud26th March 2026Oracle introduces “agentic cloud apps” into enterprise workflows Cloud Cybersecurity25th March 2026Best hybrid mesh firewalls: Check Point, Fortinet, and Cisco compared AI & Cloud30th March 2026Amazon’s retail stores are starting to run like cloud systems AI & Cloud26th March 2026Oracle introduces “agentic cloud apps” into enterprise workflows Cloud Cybersecurity25th March 2026Best hybrid mesh firewalls: Check Point, Fortinet, and Cisco compared SubscribeAll our premium content and latest tech news delivered straight to your inbox Subscribe ExploreAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyAbout UsContact UsNewsletterPrivacy PolicyCookie PolicyReach Our AudienceAdvertisePost a Press ReleaseContact UsAdvertisePost a Press ReleaseContact UsCategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesCloud in ActionEditorial DeskFeaturesFuture of CloudIndustry PerspectivesMarket IntelligenceSecurity, Privacy & TrustTechnology StackStrategy & Decision-MakingAll CategoriesOther PublicationsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsExplore AllAI NewsDeveloperIoT NewsMarketing TechTechHQTech Wire AsiaTelecomsCloudTech News is part of TechForge SubscribeAll our premium content and latest tech news delivered straight to your inbox
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