Originally posted on infra/STRUCTURE.

Digital infra/STRUCTURE Weekly Update:

  • The data center colocation sector is evolving, with neoclouds and AI driving demand, and CoreWeave going public marking a significant development in 2025.
  • Hyperscale data centers are shifting focus from individual data halls to entire campuses, reflecting larger-scale infrastructure needs.
  • Concerns about a potential bubble or overbuild in the sector have emerged, but these are seen as part of capacity management and optimization rather than an existential crisis. Comparisons to the dotcom bubble are unfounded; the sector is at a growth crossroads similar to the global hyperscale cloud build-out of the late 2000s.
  • Cloud repatriation, like 37Signals moving off AWS, is not a major trend but highlights organizations optimizing cloud usage; overall demand remains strong.
  • Partnerships, such as Together AI and 5C Data Centers, are focusing on full-stack infrastructure to support AI and cloud services. Major players like AWS and Oracle Cloud continue to invest heavily, signaling resilience and growth despite geopolitical and economic uncertainties.
  • The sector remains optimistic, with infrastructure development and AI integration driving future growth.

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