Digital infra/STRUCTURE Weekly Update: Cloud Giants Race to Build Sovereign AI Infrastructure

AWS is deploying new AI Zones in Saudi Arabia and South Korea, focusing on AI-specific infrastructure integrated with traditional cloud setups. These AI Zones align with national AI strategies, particularly in countries like Saudi Arabia and South Korea, which are prioritizing AI development for economic diversification.

Canada is also advancing its AI strategy, with companies like Bell Canada and TELUS partnering with AI providers and focusing on sovereign cloud projects to keep sensitive data within national borders.

IBM Cloud has expanded its AI infrastructure in Canada, targeting compliance-sensitive industries with GPU-based servers and sovereign cloud elements.

CoreWeave is aggressively expanding its GPU cloud capacity, leasing significant infrastructure and exploring acquisitions to enhance its AI capabilities. The GPU cloud market is shifting focus from raw infrastructure to providing advanced tools for AI application development, data management, and optimization.

Google Cloud introduced new sovereign cloud services, while Vultr secured additional credit financing to support its growth.

The cloud and AI infrastructure market is increasingly driven by partnerships, national strategies, and a focus on compliance and data sovereignty.