Canalys: In Q1 2025, Alibaba Cloud accounted for 33% of mainland China’s cloud services market, followed by Huawei Cloud at 18% and Tencent Cloud at 10%

Canalys: In Q1 2025, Alibaba Cloud accounted for 33% of mainland China’s cloud services market, followed by Huawei Cloud at 18% and Tencent Cloud at 10%

In the first quarter of 2025, Alibaba Cloud maintained its dominant position in mainland China's cloud services market, according to Canalys. With a market share of 33%, Alibaba Cloud led the pack, followed by Huawei Cloud with 18% and Tencent Cloud at 10% [1].

The growth in cloud services spending in China reached US$11.6 billion in Q1 2025, a 16% increase from the previous year [2]. This surge is largely attributed to the increasing adoption of artificial intelligence (AI) across various sectors, driving enterprises to migrate their on-premises infrastructure to the cloud [3].

Alibaba Cloud's strong performance is driven by its significant investments in AI infrastructure and model development. The company launched Qwen3, a hybrid inference model capable of adaptive reasoning, and open-sourced all eight models in the Qwen3 series. Additionally, Alibaba Cloud expanded its global presence with initiatives such as "Go Global" summits and the establishment of the Global AI Capability Center (AIGCC) in Singapore [1].

Huawei Cloud, the second-largest player, achieved an 18% year-on-year growth, focusing on enterprise-grade AI services and ecosystem development. The company launched Pangu 5.5, an advanced foundation model suite, and introduced ModelArts Versatile, a low-code platform for AI agent development. Huawei also launched a CNY150 million incentive program to support strategic product areas [1].

Tencent Cloud, despite facing GPU supply constraints, made significant strides with upgrades to its Hunyuan Turbo S and T1 models and the launch of the Tencent Cloud Agent Development Platform (TCADP). Tencent also expanded its international presence in Japan by opening a new cloud region [1].

The cloud market in China is rapidly evolving from infrastructure-focused to intelligence-led, with AI innovation, ecosystem building, and enterprise enablement becoming core pillars of growth. As foundation models mature and businesses seek faster go-to-market AI solutions, cloud providers that combine scalable compute, robust platforms, and collaborative ecosystems are positioned for sustained growth [1].

References:
[1] https://infotechlead.com/cloud/top-cloud-providers-in-china-market-share-strategies-and-ai-push-q1-2025-90265
[2] https://www.tradingview.com/news/11thestate:63ff0a7a7094b:0-alibaba-cloud-commits-60m-to-global-ai-expansion-but-here-s-what-else-investors-should-know/
[3] https://www.scmp.com/tech/big-tech/article/3317760/chinas-cloud-services-spending-hits-us116-billion-first-quarter-ai-related-demand