Digital infra/STRUCTURE Weekly Update: Colo sector rebounds as AI anchors, JV megaprojects redefine infrastructure scale

The data centre colocation sector is experiencing growth, with ecosystem companies like NVIDIA, AMD, and energy firms providing optimistic data points during earnings season.

Applied Digital secured a multi-year lease with CoreWeave for 250MW capacity in North Dakota, marking significant progress in GPU cloud expansion.

CoreWeave is involved in large-scale joint ventures (JVs) like the Blue Owl Capital project in Virginia, reflecting a trend towards multi-faceted, large-scale AI infrastructure developments.

Southeast Asia is a key growth region, with Microsoft launching its first cloud infrastructure regions in Malaysia and Indonesia, supported by colocation and self-built data centres.

Cryptocurrency companies are increasingly entering the data centre colocation and HPC-oriented cloud infrastructure space, with notable activity from Applied Digital and Core Scientific.

The sector is seeing a shift towards large-scale partnerships and global expansion, with projects like Mistral AI in France and the Crusoe Project in Texas.

Despite early bearish sentiment in 2025, the sector has shown resilience and growth, supported by data points and insights from various developments.

Structure Research's Quarterly Bulletin highlights key trends, including cloud repatriation, self-builds, and public cloud growth drivers, as the sector moves into the second half of 2025.