Digital infra/STRUCTURE Weekly Update: AI boom drives cloud, colocation and hyperscale expansion

Earnings season highlights growth in the data center, cloud, and hyperscale ecosystem, with companies like Iron Mountain, American Tower, and CoreWeave showing strong performance and expansion.

GPU-based cloud providers, such as CoreWeave and TensorWave, are driving hyperscale infrastructure demand, with significant investments and lease agreements.

Outsourcing to cloud and colocation is increasing, driven by enterprise demand for AI services and interconnection-oriented data centers.

Southeast Asia, particularly Jakarta, Indonesia, is a fast-growing market for hyperscale infrastructure, with new expansions from Google Cloud, Equinix, and Digital Realty.

Strategic developments in the APAC region include Partners Group acquiring Digital Halo and Princeton Digital Group raising $1.2 billion for regional growth.

Europe sees new investments, such as Apto's €3 billion hyperscale data center campus in Milan, Italy.

Energy demand remains a key indicator of hyperscale growth, countering concerns about overbuilding in the sector.

Edge-hyperscale deployments are gaining traction, with operators like CoreSite and Hudson Interxchange expanding their inventory.