As the demand for cloud services escalates, spending on Infrastructure as a Service (IaaS), Platform as a Service (PaaS), and hosted private clouds reached $83.8 billion globally in Q3 2024, marking a 23% increase year-over-year. This growth is largely driven by investments in generative AI technologies.
Microsoft reported a revenue increase of 22.8% to $65.59 billion for the September quarter, with operating income rising by 26% to $30.55 billion. The company's cloud services generated $38.92 billion, accounting for nearly 60% of total revenues.
Amazon's revenues reached $158.88 billion, an 11% increase, with AWS contributing $27.25 billion, up 19.1%. Operating income for AWS was $10.45 billion, reflecting a significant boost from AI-related services.
Google's revenues also grew, reaching $88.27 billion, up 13.6%, while Google Cloud generated $11.35 billion, a 28.8% increase. The company's operating income was $1.95 billion, nearly tripling from the previous year.
Collectively, Microsoft, Amazon, and Google have invested approximately $250 billion in datacenter infrastructure since the onset of the generative AI boom, with Microsoft leading in capital expenditures.