Earnings, hyperscale, CapEx, AI, colocation wins, footprint expansions, appointments
Another busy week was highlighted by the start of earnings season, more developments in the AI landscape, executive appointments and strategic activity.
Earnings season is well underway and we start with a closer look at the results from the big three public clouds, along with Meta. Two main takeaways emerged. First, growth deceleration has started to stabilize for Microsoft and Google, while AWS is still slowing. And second, there was important commentary from the hyperscalers around CapEx requirements. AI continues to ignite infrastructure demand and CapEx is expected to climb to accommodate these requirements.
As CapEx requirements start to climb, there were more notable developments in the AI landscape. NVIDIA continues to optimize its distribution of GPUs to the service provider channel and data centre operators are benefitting from GPU-oriented service provider demand. TierPoint won a significant deal to house CoreWeave’s deployments and Digital Realty has H100-ready facilities, with the latest available in Osaka, Japan. On the cloud side, AWS got some GPU inventory to market amid industry-wide supply scarcity.
Cloud infrastructure footprint expansions continue. Akamai’s Connected Cloud added more locations and plans for more in 2H23, while AWS added Phoenix to its Local Zones footprint in the US.
Meanwhile, in executive circles, there was yet more movement. Bespin Global in South Korea has a new CEO, while EdgeCore brought in a new chief commercial officer.
Finally, there was more strategic activity. OMERS invested in Canadian fibre provider Beanfield Metroconnect, Apps Associates acquired Entec’s business unit focused on Oracle applications and TPG Real Estate acquired a majority stake in a portfolio of Digital Realty data centres in NoVA.
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