Digital infra/STRUCTURE Weekly Update: AI and GPUs Usher in Post-Hyperscale Colocation Era

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.