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Generative AI driving computer power demand: researchers

By Zhang Chenxu | chinadaily.com.cn | Updated: 2025-12-31 20:14
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Generative artificial intelligence is driving demand for computing power while reshaping how enterprises allocate information technology budgets and procure software, a number of market research institutes have said.

According to Synergy Research Group, an enterprise specializing in global technology sectors, it is estimated that global spending on cloud infrastructure services reached nearly $99 billion in the second quarter of 2025, marking a year-on-year increase of approximately 25 percent, with AI-related workloads being a key driver.

With the rise in cloud investment, cloud marketplaces are entering a new phase. These platforms, operated by cloud providers, enable customers to purchase third-party software and services. Once primarily digital catalogs, they are now increasingly used as procurement routes that integrate budgeting, compliance and billing more closely within the cloud ecosystem.

Canalys, a market research firm, projects that enterprise software sales through major hyperscalers' cloud marketplaces, led by Amazon Web Services, Microsoft Azure and Google Cloud, will grow from $16 billion in 2023 to $85 billion by 2028.

However, growth is also driving increased complexity. As companies expand across multiple clouds and routes, the burden grows. A single deal can involve multiple departments, including sales, operations, finance, legal and partnerships. In addition, different marketplaces come with varying workflows and data structures.

Song Hua, a professor at the Business School of Renmin University of China, said that procurement and supply management is moving beyond a supporting function and becoming a driver of profitability and competitiveness.

In future, competition will focus less on the speed of listings and more on delivering a consistent operating experience across multiple clouds and channels, said Guo Yue, founding designer at Suger, a software company specializing in cloud marketplace operations.

"Operational gains often come from combining automation with AI," Guo added.

"For instance, automation tools like field mapping help standardize the flow of data between marketplaces and customer relationship management systems, while AI features such as Auto-Enrich Referrals can fill in missing company and contact details before a referral is shared."

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