Enterprise AI adoption is helping to drive cloud growth, according to Sid Nag, VP analyst at Gartner. "The use of AI technologies in IT and business operations is unabatedly accelerating the role of cloud computing in supporting business operations and outcomes," he said in the report.

Cloud infrastructure delivered large language models to the enterprise, and hyperscaler platforms now serve as marketplaces for a growing number of generative AI-powered applications.

Combined, cloud infrastructure and platform services -- a segment Gartner calls CIPS -- will comprise the largest category of enterprise cloud spend in 2025, increasing by 24% to over $300 billion, according to the forecast.

"Organizations are choosing CIPS because workloads of today are complex, and organizations are seeking integrated platforms to simplify development, deployment and operations," Nag said. "Organizations deploying a multicloud adoption model, which is still recording growth, are also driving spend on CIPS."

As enterprises modernize data operations and adopt cloud-based generative AI tools tailored to industry verticals, hybrid ecosystems that integrate on-premises systems with hyperscaler infrastructure will also expand. Gartner expects 90% of organizations to have hybrid cloud deployments by 2027.