Big Tech's Cloud Spend: More Than Just AI

As Big Tech companies continue to invest heavily in cloud infrastructure, the narrative often focuses on their pursuit of artificial intelligence (AI) and generative AI. However, a closer look reveals that the primary non-AI use cases driving their cloud spending are equally, if not more, significant. These use cases contribute to the overall growth in cloud infrastructure investment, fueling the competitive positioning and long-term growth prospects of these tech giants.

Data Center Systems: Big Tech companies are investing heavily in data center systems to house their servers, storage, data protection, and networking environments. In 2025, worldwide spending on data center systems is expected to reach $405.5 billion, up from $329.1 billion in 2024, representing a 23% growth rate (Gartner, 2025 IT Spending Forecast). This growth is driven by the increasing demand for scalable and robust data center infrastructure to support various business operations and services.

Devices: Companies continue to invest in devices such as PCs and Internet of Things (IoT) offerings. In 2025, worldwide spending on devices is projected to reach $810 billion, up 10% year over year compared with $734 billion in 2024 (Gartner, 2025 IT Spending Forecast). This growth is fueled by the increasing adoption of IoT devices and the need for businesses to upgrade their hardware to support advanced applications and services.

Software: Software spending is also a significant driver of cloud spending. In 2025, global spending on software is expected to jump more than 14% year over year, surpassing the $1 trillion mark once again (Gartner, 2025 IT Spending Forecast). This growth is driven by the increasing demand for enterprise software solutions, including customer relationship management (CRM), enterprise resource planning (ERP), and other business applications.

Communications Services: This includes collaboration and productivity offerings such as videoconferencing and messaging, as well as call center technology. In 2025, worldwide spending on communications services will reach $1.42 trillion, up 4% year over year (Gartner, 2025 IT Spending Forecast). This growth is driven by the increasing adoption of unified communications and collaboration (UCC) solutions, as well as the need for businesses to improve their customer engagement and support.



These non-AI use cases contribute to the overall growth in cloud infrastructure investment by driving demand for cloud-based solutions, which in turn requires increased investment in cloud infrastructure. As businesses continue to adopt and scale these technologies, the need for robust and scalable cloud infrastructure grows, fueling the overall investment in cloud infrastructure.

Moreover, the strategic acquisitions and partnerships of Big Tech companies in the cloud infrastructure space significantly influence their competitive positioning and long-term growth prospects. These moves allow them to integrate advanced technologies and top talent into their operations, enhancing their capabilities and market reach. For example, Google's acquisition of DeepMind, Apple's acquisition of Xnor.ai, and Microsoft's acquisition of Nuance Communications have all strengthened these companies' positions in the AI and cloud infrastructure markets.

In conclusion, while AI and generative AI are undoubtedly driving significant investment in cloud infrastructure, the primary non-AI use cases, such as data center systems, devices, software, and communications services, are equally important in fueling the growth of Big Tech's cloud spending. These use cases contribute to the overall growth in cloud infrastructure investment, driving the competitive positioning and long-term growth prospects of these tech giants. As businesses continue to adopt and scale these technologies, the need for robust and scalable cloud infrastructure will only grow, ensuring that cloud spending remains a critical investment area for Big Tech companies.