Total spending on cloud infrastructure services surged 58 percent year on year to 2.3 billion U.S. dollars in Q2, the report said.
Chinese organizations, particularly startups, government agencies and enterprises, have become more ambitious in growing their digital capabilities to capture opportunities in the country's massive internet and mobile-based consumer market, said Canalys research analyst Daniel Liu.
"The Chinese cloud market is just at the initial stage of growth," Liu told Xinhua. "Cloud projects in such fields as internet, videos, smart cities and big data have kept expanding."
Competition is becoming more intense, with major cloud service providers investing aggressively in their market presence, according to the report.
Alibaba Cloud remained the dominant cloud service provider, as its sales accounted for 43 percent of the market in Q2 with a year-on-year growth of 47 percent, the report said.
Sales of Tencent Cloud grew by 88 percent in Q2, while those of Amazon Web Services and Baidu AI Cloud rose 48 percent and 92 percent, respectively, the report showed.
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