The wider cloud infrastructure market reached $167.7 billion in the third quarter of 2026.
Why this market is moving now
- Worldwide sovereign cloud IaaS spending is forecast to grow 35.6% in 2026, to $80 billion.
- Sovereign demand is forecast to move 20% of current workloads from global to local cloud providers.
- AWS opened its European Sovereign Cloud in January 2026, backed by a 7.8 billion euro investment.
- The planned EU Cloud and AI Development Act sets out sovereignty levels up to EU ownership and control of cloud providers.
Key figures
Global figures for this market, with the year each one describes. Use Cite to copy a reference to this page.
| Figure | Value | Year | Cite |
|---|---|---|---|
| Worldwide sovereign cloud infrastructure as a service (IaaS) spending is forecast at $80 billion in 2026, up 35.6% from 2025. | 80 USD billion | 2026 | |
| China and North America are forecast to be the two largest sovereign cloud IaaS markets in 2026, at $47 billion and $16 billion. | 47 USD billion | 2026 | |
| Sovereign cloud IaaS spending in Europe is forecast to rise from $6,868 million in 2025 to $23,118 million in 2027, overtaking North America. | 23,118 USD million | 2027 | |
| Sovereign cloud IaaS demand is forecast to move 20% of current workloads from global to local cloud providers. | 20 % of current workloads | 2026 | |
| Worldwide cloud infrastructure services revenue was $167.7 billion in the third quarter of 2026 and $558 billion over the trailing 12 months. | 167.7 USD billion | 2026 | |
| Amazon, Microsoft and Google held 26%, 19% and 16% of the worldwide cloud infrastructure services market in the third quarter of 2026. | 26 % world market share (Amazon) | 2026 | |
| The United States accounted for 44% of the world cloud infrastructure services market in the third quarter of 2026. | 44 % of world market | 2026 | |
| AWS opened its European Sovereign Cloud in January 2026, with its first region in Brandenburg, Germany, backed by a 7.8 billion euro investment. | 7.8 EUR billion | 2026 | |
| SAP said in September 2025 it will invest over 20 billion euros in its sovereign cloud capabilities in Europe over 10 years. | 20 EUR billion | 2025 | |
| The planned EU Cloud and AI Development Act sets out four sovereignty levels for cloud providers, and Level 3 requires providers to be owned and controlled from the EU. | 3 sovereignty level | 2026 |
Calculated figures (shares, changes and prices per kilogram) are plain arithmetic on the reported values. Read how we work.
Companies to watch
Amazon Web Services
Largest cloud provider with 26% of the world market in Q3 2026; opened its European Sovereign Cloud in January 2026.
Microsoft
Second largest cloud provider, with 19% of the worldwide cloud infrastructure services market in Q3 2026.
Third largest cloud provider, with 16% of the worldwide cloud infrastructure services market in Q3 2026.
SAP
Plans to invest over 20 billion euros in sovereign cloud capabilities in Europe over 10 years.
What the full report covers
- 01Executive summary
The answer in one page: size, direction and what moves it - 02Market definition and scope
What is in and out of the global market - 03Global market size, 2021 to 2025
Historical series and growth rates - 04Countries and regions
Demand, supply and trade by country and region - 05Outlook to 2031
Base, low and high scenarios with stated assumptions - 06Rules, policy and deadlines
Regulation and programmes that change demand - 07Drivers and barriers
What accelerates or slows adoption, by customer segment - 08Prices, costs and margins
Unit economics where public data allows - 09Competitive landscape
8 to 12 company profiles with recent moves - 10Opportunities and risks
For new entrants, suppliers and investors - 11Method and assumptions
How every figure was built
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Frequently asked questions
How big is the global sovereign cloud market?
Worldwide sovereign cloud IaaS spending is forecast at $80 billion in 2026, up 35.6% from 2025. Sovereign demand is forecast to move 20% of current workloads from global to local cloud providers.
Which countries spend the most on sovereign cloud?
China and North America are forecast to be the two largest markets in 2026, at $47 billion and $16 billion. Europe is forecast to reach $23,118 million in 2027 and overtake North America.
Who are the largest cloud providers in the world?
Amazon, Microsoft and Google held 26%, 19% and 16% of the worldwide cloud infrastructure services market in the third quarter of 2026.
How big is the global cloud infrastructure market?
Worldwide cloud infrastructure services revenue was $167.7 billion in the third quarter of 2026 and $558 billion over the trailing 12 months. The United States accounted for 44% of the world market.
How much are cloud providers investing in sovereign cloud?
AWS backed its European Sovereign Cloud, opened in January 2026, with a 7.8 billion euro investment. SAP plans to invest over 20 billion euros in sovereign cloud capabilities in Europe over 10 years.
What rules shape sovereign cloud demand?
The planned EU Cloud and AI Development Act sets out four sovereignty levels for cloud providers. Level 3 requires providers to be owned and controlled from the EU.
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