Mainland China’s cloud infrastructure services spending reached $14.7 billion in Q4 2025, marking a 26% year-on-year increase, according to a report released by Omdia on Monday, April 27, 2026.
The surge highlights a strategic pivot in the Chinese tech sector: the focus is shifting from simply training Large Language Models (LLMs) toward the deployment of AI Agents that can execute complex business workflows.
1. Q4 2025 Market Performance
This quarter marked the third consecutive period of growth above 20% for China’s cloud market, driven by deep enterprise AI integration.
| Metric | Q4 2025 Performance | Change (YoY) |
| Total Cloud Spending | $14.7 Billion | ▲ 26% |
| Partner-Driven Revenue | 25% of Market | Growing |
| AI-Related Growth | Triple-Digit % (Alibaba) | Record Highs |
2. The Rise of “Agentic AI”
Omdia’s research indicates that commercial AI is evolving beyond chatbots into execution-oriented agents.
- Operational Shift: Enterprise attention is moving away from model size toward product readiness and the ability of AI to connect to external systems and tools.
- The “OpenClaw” Factor: The rapid emergence of OpenClaw in China has provided a clear template for how agents can manage multi-step workflows through conversational interfaces.
- Cost Efficiency: New serverless platforms like Alibaba Cloud’s AgentRun (launched Dec 2025) are reportedly reducing the Total Cost of Ownership (TCO) for AI agents by up to 60%.
3. Top Cloud Providers: Market Share
The “Big Three” in China—Alibaba, Huawei, and Tencent—now account for approximately 70% of the total market.
- Alibaba Cloud (37% Share): Maintained its dominant lead. Its Model Studio now serves over 300,000 customers, and its AI-related product revenue has seen triple-digit growth for ten consecutive quarters.
- Huawei Cloud (17% Share): Focused on industry-specific AI. In early 2026, it launched the Industry AI Foundry and a CNY 200 million ($28.9 million) AI ecosystem fund to support partners.
- Tencent Cloud (Market Share ~15%): Is accelerating its agent strategy by using its massive instant messaging ecosystem (WeChat) as a primary interface for agent invocation and execution.
4. 2026 Outlook: A $61 Billion Opportunity
The momentum is expected to carry through the rest of the year as AI agents move closer to real-world business scenarios.
- Spending Forecast: Omdia projects that China’s cloud spending will continue to grow by 26% overall in 2026.
- Market Size: The total China cloud computing market is estimated to reach $61.19 billion by the end of 2026.
- Regional Growth: Central and West China are expanding quickly (27.2% CAGR) due to the government’s “Eastern Data, Western Computing” initiative, which moves heavy AI processing to regions with cheaper renewable energy.