Tags: AI demand • AI Infrastructure • CAPEX • cloud hardware • cloud investment • DATA CENTERS • GPUs • hyperscalers • infra // STRUCTURE • infrastructure expansion • supply imbalance
Originally posted on infra/STRUCTURE.
Digital infra/STRUCTURE Weekly Update:
- Hyperscale cloud platforms Amazon, Microsoft, and Google reported accelerating growth, with demand outpacing supply and significant CapEx increases in 2025.
- Microsoft and Amazon reported high CapEx levels in 2Q25, with Microsoft at $24.2B and Amazon at $31.4B, though their future projections differ on demand-supply balance.
- Data center expansion continues globally, with notable projects in the US (e.g., Stargate in Texas, Aligned Data Centers in Ohio) and East Asia (e.g., AirTrunk in Japan, Empyrion Digital in South Korea).
- Empyrion Digital and Digital Edge are expanding in South Korea, with Digital Edge securing green loans for a 60MW facility in Seoul.
- Financing activity remains strong, with companies like Cologix, Digital Edge, EdgeCore, and Scala Data Centers securing funds for development across the Americas and APAC.
- The sector debates potential overbuilding, but recent data suggests growth acceleration driven by AI adoption and continued infrastructure investment. Hyperscale growth is fueling development in the data center colocation space, with steady progress reported by companies like Equinix and Digital Realty.
- The industry remains focused on balancing hyperscale and edge infrastructure to meet growing demand.
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