XCode Cloud is Apple's babystep to compete with AWS

It's a nobrainer that the cloud runs on M1 chips. It would make no sense at all to run XCode Cloud on Intel chips. The contract with AWS is a multi billion contract which ends in 1 - 2 years. Before that, Apple ran on GCP and Azure. They've gathered enough experience to compete. Although I don't think it'll be a public thing anytime soon, it's a big chunk of potential revenue.