Digital infra/STRUCTURE Weekly Update: AI and Hyperscale Expansion Drive Global Data Center Boom

Hyperscale cloud providers (Oracle, Amazon, Microsoft, Google) report steady growth with increased CapEx, driven by AI and enterprise demand. Meta, though not a cloud provider, is heavily investing in data centers, reflecting broader infrastructure expansion trends.

AI adoption is driving significant demand for colocation and interconnection services, with enterprises accelerating cloud transformation projects.

Companies like Equinix and Digital Realty report enterprise-driven growth, with AI workloads fueling colocation demand.

Neocloud providers like CoreWeave are expanding, with new data centers in Canada and Europe, supporting AI infrastructure for companies like OpenAI and Cohere.

Strong investment activity continues in the data center sector, with financing secured by companies like eStruxture and Serverfarm, and acquisitions by Snowhawk, Nuveen, and Apollo.

AI and hyperscale growth are reshaping the data center landscape, with increased outsourcing and infrastructure development to meet demand. Recent projects include CoreWeave's Canadian data center and Stargate's European expansion, highlighting global growth in AI-driven infrastructure.