A novel cloud-based multi-tenant model creation service (CMMCS) for automatic virtual metrology (AVM) has been proposed. Designs of key components and mechanisms have been presented to effectively address the existing AVM’s MC limitations. CMMCS can support multi-tenant/user model creation for AVM, being applicable to the distributed manufacturing context. A case study of creating VM models for machine tools in machining wheel rims of autos demonstrates the efficacy of CMMCS. Results can be useful references for industrial practitioners to construct AVM systems supporting multi-tenant MC.