Originally posted on infra/STRUCTURE.

Digital infra/STRUCTURE Weekly Update:

  • The dominance of hyperscale in data center colocation is declining, with GPUs and AI driving a shift in end-user profiles, leading to the rise of “neoclouds.”
  • Companies like Crusoe, Nebius, and Lambda are expanding GPU-based cloud infrastructure, with significant investments and partnerships to support AI-driven services.
  • OpenAI is diversifying its hyperscale cloud partnerships, adding Google Cloud alongside Microsoft Azure, Oracle Cloud, and CoreWeave for increased capacity.
  • The GPU cloud market is diversifying, with companies like DigitalOcean and Crusoe adopting AMD Instinct chips for their services, moving beyond NVIDIA’s ecosystem.
  • The hyperscale colocation sector is evolving, with new players like CoreWeave and ByteDance emerging, alongside NVIDIA’s marketplace for GPU cloud services.
  • AWS, Meta, and Google are heavily investing in data center infrastructure, with a focus on nuclear energy to support carbon-free operations and AI requirements.
  • Capital investments in the data center sector remain strong, with companies like Vantage Data Centers, DayOne, and Ada Infrastructure raising significant funds.
  • The sector continues to grow, dismissing concerns of overbuilding, as demand for hyperscale and GPU cloud services expands.

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