Hyperscale, earnings, M&A, credit lines, GPUs, AI, off-premise migrations
A busy week saw more from earnings season, strategic activity, demand from service providers for data centre infrastructure and AI developments on the mass-market cloud side.
We took a closer look at Amazon’s cloud results, which showed more growth deceleration, though management claims to be seeing signs of stabilization in the business. This would match up with what we saw at Microsoft and Google. Meanwhile, Equinix and Digital Realty reported solid results, with both commented on the increased wave of demand coming from the AI world.
There were more strategic developments of note. CoreWeave has been busy raising capital and secured a substantial credit facility to support is rapid growth, while on the data centre side, STACK and ESR closed on debt funding. There were also a number of acquisitions. Mubadala invested in hyperscale operator Aligned Data Centers, we tracked multiple recent acquisitions by Edge Centres, Seaport Capital acquired a stake in MSP CyberlinkASP and OVHcloud is set to acquire gridscale in Germany.
CoreWeave is an example of a non-hyperscale operator looking to procure colocation in multi-MW blocks and OVHcloud is part of the webscale tier that is looking to use colocation to help with global expansion plans. We have some details on what OVHcloud has in store.
Organizations continue to migrate to off-premise outsourced infrastructure and the decreased support of legacy installations is another driving factor. SAP was the latest to cut its support offerings as more deployments move to cloud and managed infrastructure environments.
While the hype around AI is focused on the underlying infrastructure, there are applications for the end user experiences of cloud service providers. GoDaddy is using AI to make its site building and management capabilities more intuitive and streamlined. It is another example of how AI is going to fundamentally shift the industry.
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