3Q24 IB: Executive Summary
The recent quarter saw the sector build on the emerging stability reached in the last few quarters. Overall, the sector performed well. Revenue growth, KPIs and the emerging momentum and quality in the pipeline are signs that the sector has turned the corner and started to move in the other direction. There are even signs that things may start to accelerate, but there are plenty of other challenges that make it likely that whatever momentum is built, it will be steady, incremental, and not likely to be explosive. That may well happen in the coming years, but that time is not now. Yet even with a cautious outlook, it is hard to miss the fact that there are encouraging signs in many places. The long-term opportunity of hyperscale cloud, and the potential for AI to supercharge that growth, is drawing entrepreneurs and investors from around the world to the Internet infrastructure services sector. JVs are being formed, capital is pouring in, new companies are entering the space, and holders of critical resources such as land and energy are looking at how to participate in the value chain. And the scale and scope of what is being built is creating new business models that require collaboration and partnership, and elevated operating acumen and understanding of the nuances of how hyperscale and AI infrastructure is going to be built. As the sector moves into the last part of the year, it is on solid footing and positioned for more growth in 2025. 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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