4Q24 IB: Executive Summary
The sector left the final quarter of the year on a good note. The overall stabilization of the sector has settled in, and while there are many moving parts and potential roadblocks, there are also emerging tailwinds ready to take things to the proverbial next level. Revenue growth was steady, KPIs are trending in the right direction and sales pipelines are filling, and there are plenty of reasons to be optimistic moving forward. Demand is exceeding supply in certain pockets, hyperscalers are pivoting to colocation for certain requirements, and GPU-based cloud infrastructure resources are being delivered across not just hyperscalers, but webscale and various independent service provider operating platforms. There is competition that is driving innovation and differentiation, while customers are benefitting from more flexibility and choice. Further validation of the sector’s outlook can be seen in the rampant investor interest. Capital is flowing into the sector up and down the value chain, JVs are being assembled and entities with land and energy are trying to figure out how to tap into the long-term opportunity that hyperscale and AI represents. This report takes a close look at the noteworthy trends and developments from the recent 2Q24 period. A more detailed look at the M&A landscape, APAC region and hyperscale cloud sectors is available to clients in separate quarterly reports.
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