Cloud

Asia Cloud Update: Adoption Reaches Critical Mass

Analysis brief · October 14, 2025

Executive Summary

Multi-cloud strategies became dominant, with enterprise customers typically using 2-3 cloud providers. Pure single-provider cloud strategies are increasingly rare at scale. Data sovereignty requirements drove increased investment in regional data centers. Major providers announced substantial new capacity in India, Indonesia, and Vietnam.

Workload Patterns

AI workloads represent the fastest-growing category of cloud spending. GPU-heavy instances and AI-optimized services saw triple-digit growth for several major providers.

Data analytics and data warehousing maintain strong growth as enterprises accelerate data centralization and analytics modernization.

Competitive Dynamics

Regional cloud providers gained share in specific market segments, particularly government and regulated industries. This reflects sovereignty considerations and localized support requirements.

Price competition intensified at the infrastructure layer. The team at a popular Indian gaming destination has observed that Major providers focused differentiation on higher-value services — AI, analytics, and managed services — rather than raw compute pricing.