Understanding What’s Next for Digital Infrastructure

At this year’s infra/STRUCTURE Summit 2025, held at the Wynn Las Vegas, industry leaders came together to unpack the state of digital infrastructure in an era defined by AI-driven demand and hyperscale expansion.

One of the standout sessions of the event was “Measured Optimism,” led by Philbert Shih, Managing Director of Structure Research. Known for his data-first insights and global perspective, Shih provided an in-depth look at where the data center market stands today, and where it’s heading next.

His central question set the tone: Are we in a period of sustainable growth, or are we overbuilding?

A Balanced View: Bullish but Realistic

Shih began by acknowledging the debate between the “bulls” and “bears” in digital infrastructure, those who see unbounded opportunity and those who warn of a potential correction.

While recognizing some speculative trends, such as “fake data centers” and build pauses in certain regions, Shih urged attendees to take a longer view.

“There’s a lot of interest in the space, a lot of people with assets to develop,” Shih said. “But the fundamentals remain strong. We’ve seen time and again that this sector has the ability to absorb and grow through cycles.”

Shih drew comparisons to previous market phases. From the dot-com era to the rise of cloud computing, he suggested that what we’re seeing today is a natural evolution, not a bubble.

What the Data Shows

Shih supported his analysis with Structure Research’s latest findings:

  • Demand Continues to Outpace Supply. Hyperscalers and AI workloads are driving record demand. “We consistently see management teams reporting more demand than they can support,” Shih shared.
  • AI is an Accelerant, Not a Disruption. Shih explained that Meta’s recent build pause was less about demand softening and more about re-architecting for AI infrastructure. “AI is reshaping how capacity is planned and deployed,” he said.
  • Global Growth Momentum. While North America remains the largest market, growth across Europe and Asia is accelerating. Chinese and regional cloud providers are increasingly driving new development around the world.
  • Healthy Cycles, Not Cracks. Shih described the current slowdown in some areas as part of the natural “build–pause–absorb” cycle that defines infrastructure development. “Infrastructure doesn’t grow in a straight line,” he noted.

Collaboration Over Competition

A recurring theme throughout Shih’s presentation was partnership. The idea that hyperscalers might replace colocation providers with self-built facilities has largely given way to collaboration.

“There’s more cooperation between hyperscalers and colocation providers than ever before,” Shih said. “These partnerships are becoming essential to meeting global demand efficiently and sustainably.”

Shih also highlighted opportunities in pre-development and edge-scale projects, where new entrants and established providers alike are finding innovative ways to meet demand closer to users.

A Measured but Positive Outlook

Despite capital market challenges, supply chain constraints, and growing power demands, Shih’s conclusion was optimistic, grounded in data and real-world momentum.

“I’m more confident today than I was two years ago,” Shih said. “We’re not overbuilding, we’re building smarter, globally, and with a clearer sense of what’s next.”

The session ended with a strong message: while the sector must navigate its cycles carefully, the long-term trajectory remains firmly upward.

Infra/STRUCTURE 2026: Save the Date

Want to tune in live, receive all presentations, gain access to C-level executives, investors and industry leading research? Then save the date for infra/STRUCTURE 2026 set for October 7-8, 2026 at The Wynn Las Vegas. Pre-Registration for the 2026 event is now open, and you can visit www.infrastructuresummit.io to learn more.