Digital infra/STRUCTURE Weekly Update: Earnings reports defy overbuild fears in hyperscale and data centers

Early earnings season results are offering valuable insights into the sector’s current trajectory. Initial data points suggest a steadier path forward than some had feared. CapEx remains on track.

Hyperscale earnings show growth on the enterprise side. Organizations need cloud infrastructure to utilize AI. AWS and Microsoft see healthy demand in traditional cloud infrastructure.

Concerns about sector overbuild are being tempered as companies report solid demand and stable utilization rates. These early indicators point to a more balanced supply-demand dynamic.

Apollo acquires STACK’s European colocation assets, while STACK refocuses on hyperscale data centres.

Growth in managed public cloud services continues, with new product launches from DigitalOcean and Akamai, while NVIDIA's Blackwell GPUs going live on CoreWeave and Oracle Cloud add to sector demand.