It's also an answer to caching with /nix/store. I wish more cloud services supported "give me your nixosConfiguration or something similar" instead of providing api to build containers/vms imperatively. Dockerfile and everything that mimics it is my least favorite way to do this.
It’s fairly trivial to map your NixOS config into a VM image: https://nixos.org/manual/nixos/stable/#sec-image-nixos-rebui...
An alternative is to “infect” a VM running in whatever cloud and convert it into a NixOS VM in-place: https://github.com/nix-community/nixos-anywhere
In fact, it is a common practice to use the latter to install NixOS on new machines. You start off by booting into a live USB with SSH enabled, then use nixos-anywhere to install NixOS and partition disks via disko. Here is an example I used recently to provision a new gaming desktop:
At the end of this invocation, you end up with a NixOS machine running your config partitioned based on your disk config. My disko config in this case (ZFS pool with 1 disk vdev): https://gist.github.com/aksiksi/7fed39f17037e9ae82c043457ed2...