Public Cloud Market - Regional Analysis
North America Market Insights
North America is projected to lead the market, registering the highest share of 50.4% during the forecast period. The region’s progress in this field is driven by an advanced technology ecosystem, high cloud adoption rates, and rising investments in AI, machine learning, and data analytics. The region benefits from the presence of strong cloud service providers and widespread hybrid and multi-cloud deployments across various industries. Google in August 2025, announced that it is making a USD 9 billion investment in Oklahoma over two years to expand cloud and AI infrastructure, which includes a new data center campus in Stillwater and enhancements to the existing facility in Pryor. It states that the initiative also supports workforce development through AI training and Google Career Certificates at the University of Oklahoma and Oklahoma State University, along with programs to expand the electrical workforce by 135 %. In addition, this investment aims to build a skilled talent pipeline, strengthen Oklahoma’s infrastructure, and advance U.S. leadership in AI and cloud technologies.
The U.S. is the dominant player in the North America market, efficiently fueled by early adoption of cutting-edge technologies, a high-end tech ecosystem, and a thriving startup culture. Government initiatives supporting cloud adoption and data security standards are also efficiently boosting the market expansion in the country. In this context, the U.S. Department of the Treasury, in May 2023, announced the launch of the cloud executive steering group, which is a public-private partnership dedicated to enhancing cloud adoption in the financial sector. Moreover, CESG aims to develop best practices, improve cloud security, standardize terminology, and thereby strengthen regulatory oversight for financial institutions, which in turn attracts more players to make investments in this field. Furthermore, this initiative underscores the collaboration between regulators and private firms that efficiently drives secure, compliant cloud adoption, supporting digital transformation in the BFSI segment.
Canada's public cloud market is growing rapidly, on account of increased demand for digital transformation and compliance with data residency laws. The country’s market also benefits from a strong emphasis on localized data centers, and partnerships between global and domestic providers support industries such as banking, healthcare, and public services. Leaseweb in June 2023, announced the expansion of Leaseweb Cloud Connect in the country to enhance and expand its fast and secure network connectivity to Microsoft Azure, Google Cloud, and Amazon Web Services (AWS) from its data centers in Canada. Besides, this hybrid cloud solution allows organizations to distribute workloads across public and private clouds, enhancing flexibility, efficiency, and cost optimization. Thus, the initiative reflects growing enterprise adoption of hybrid cloud strategies to accelerate digital transformation by maintaining secure, high-performance IT operations in the country.
APAC Market Insights
The public cloud market in the Asia Pacific is progressing at an exceptional rate owing to the growing digital transformation initiatives across multiple industries, including manufacturing, retail, and BFSI. Most of the governments across this region are also promoting cloud adoption through policies supporting smart cities, e-governance, and digital infrastructure, which is driving demand for localized, secure, and compliant cloud solutions. In April 2023, SAP Southeast Asia announced the launch of Grow with SAP, which is a cloud ERP offering especially designed to help SMEs accelerate digital transformation and innovation. Besides, the solution deliberately combines SAP S/4HANA Cloud, SAP Business Technology Platform, which allows businesses to automate processes, build applications without coding, and scale efficiently. Furthermore, in partnerships with regional organizations, SAP aims to empower SMEs across Southeast Asia to improve governance and competitiveness in the digital economy.
China is continuing its growth trajectory in the public cloud market, primarily fueled by the presence of hyperscale providers such as Alibaba Cloud, Tencent Cloud, and Huawei Cloud. Similarly, enterprises in the country are leveraging cloud platforms to enable AI, big data analytics, and IoT applications. In addition, the country’s market also benefits from government initiatives such as the Digital China Strategy and investments in 5G and smart city projects, which are remarkably fueling cloud adoption across both the public and private sectors. In September 2025, Tencent Cloud introduced a major AI-era upgrade to its Big Data Suite (TBDS) by integrating data engineering and AI capabilities for financial institutions in the country. The firm also noted that the platform enables unified management of multi-modal data, automates data and ML workflows, and enhances operational efficiency for complex financial situations. Hence, such milestones underscore Tencent Cloud’s role in accelerating digital transformation and AI adoption within China’s financial sector.
India is also representing consistent progress in the public cloud market since organizations are moving workloads to the cloud to enhance agility, scalability, and cost efficiency. The country’s market is also propelled by initiatives such as the National Cloud Policy, Digital India, and the growth of startup ecosystems, which are accelerating demand for both public and hybrid cloud services. In December 2025, Amazon announced that it made an investment of USD 35 billion in the country through 2030, which is aimed at expanding AI-driven digitization, boosting exports. The firm also notes that the initiative will support 15 million small businesses with AI tools, empower 4 million students with AI education, and strengthen India’s digital and logistics infrastructure. Furthermore, it is being built on nearly USD 40 billion already invested, and Amazon’s expansion reinforces its role as a major driver of India’s digital transformation and economic growth.
Europe Market Insights
The Europe market is anticipated to register a considerable share from 2026 to 2035. The market’s growth in the region is efficiently driven by digital transformation, cloud-first strategies, and heightened demand for data sovereignty. Simultaneously, the regulatory frameworks such as GDPR play an important role in shaping cloud adoption, with a strong emphasis on security and compliance. In October 2023, Amazon Web Services announced that it had launched the AWS European Sovereign Cloud, which is an independent cloud designed to meet strict regulatory, data residency, and operational requirements for the public sector and highly regulated industries. It also mentioned that the cloud will be completely operated by EU-resident AWS employees and maintain all customer metadata within the region, with a prime focus on ensuring sovereignty and compliance. This initiative has been welcomed by regulators in Europe, governments, and major partners, providing secure, low-latency, and highly available cloud infrastructure by supporting digital sovereignty and economic development.
The UK public cloud market is representing rapid adoption across industries such as financial services, healthcare, and retail. Simultaneously, aspects such as post-Brexit regulatory alignment and the strong emphasis on domestic data centers have influenced cloud strategies. In this context, SAP SE in November 2024 announced the general availability of its Sovereign Cloud capabilities in the country, which is reported to be in accordance with the UK’s Data Protection Act 2018. It also stated that this launch will be providing secure, localized cloud solutions for the public sector, critical infrastructure, as well as highly regulated industries. The offering supports UK data residency and security requirements, and Cyber Essentials Plus standards, and includes SAP S/4HANA Private Cloud, SuccessFactors, BTP, and other enterprise solutions. Hence, such instances are efficiently driving digital transformation and compliance across sectors such as government, defense, and energy.
France’s public cloud market is benefiting from a focus on digital sovereignty and a preference for Europe-based cloud providers such as OVHcloud. On the other hand, the government’s Cloud of Trust initiative promotes secure and locally managed cloud services in this country. For instance, in June 2025, OVHcloud and Equans Digital together announced that they had launched the on-prem cloud platform in France, delivering a sovereign, secure, and domestically hosted cloud solution for industrial companies, local authorities, and healthcare providers. It also highlighted that this platform allows organizations to maintain control of sensitive data, also benefiting from high performance, low latency, and continuous availability, aligning with France’s digital sovereignty and cloud de confiance initiatives. Furthermore, this partnership builds on prior collaborations and reinforces the commitment of providers in France to offer trusted, local alternatives.
