Cloud infrastructure spending in mainland China is projected to grow by 15% in 2025, reaching US$46 billion, according to a report by market research firm Canalys.

This follows a 13% increase in 2024, indicating ongoing growth driven by the adoption of AI technologies.

The launch of AI foundation models, such as DeepSeek’s R1 in January, has been significant in promoting enterprise adoption of AI, according to Rachel Brindley, senior director at Canalys.

These advancements have reportedly changed benchmarks for performance and costs in the cloud services sector.

Leading cloud providers, including Alibaba Group, Huawei Technologies, and Tencent Holdings, plan to expand their investments in computing resources and AI infrastructure.

Alibaba, which held a 36% market share in the fourth quarter of 2024, has committed to investing 380 billion yuan (US$52.4 billion) over the next three years.

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