WSS: Earnings season shows growth across ecosystem as neoclouds continue to sign deals and procure data centre capacity
As the sector continues to mature, earnings season is becoming more comprehensive for the sector. We have looked at the results coming from all the listed hyperscale platforms in both the US and China (AWS, Microsoft, Google, Oracle, Alibaba, Tencent, Meta) and the level of performance was high. Growth rates are accelerating and demand continues to outpace supply, leaving plenty of upside on the table. Large-scale deals for AI-oriented infrastructure are a significant growth driver, but enterprises are also pushing things forward. In the recent week, we moved into the webscale tier, and took a closer look at the results coming from DigitalOcean, Cloudflare and Akamai. All three showed healthy and accelerating growth rates and reported some of the same dynamics seen in the hyperscale space: developing RPO backlogs, increasing deal sizes for raw compute, uptake in AI-oriented services and inferencing growth driving uptake in both GPU and traditional cloud infrastructure services. We also looked at the results coming from CoreWeave, which is growing faster than the webscale tier and is not quite on par with the hyperscalers – at least, not just yet. The healthy growth trajectory and momentum, needless to say, is flowing through the ecosystem. Last week, we looked at the results for some of the data centre colocation operators, including Applied Digital, Iron Mountain and CoreSite, and this week we delved into the bellwethers Digital Realty and Equinix. Both Digital Realty and Equinix performed well, with healthy leasing rates and strength in the pipeline.
The neocloud space continues to emerge and the past few weeks some more interesting developments. CoreWeave is increasingly building outside the US and will have a data centre presence later this year in western Canada as it partnered up with pan-Canadian data centre operator eStruxture. CoreWeave will stand up infrastructure in eStruxture’s CAL-3 data centre in Calgary, Alberta. This will be CoreWeave’s third Canadian data centre location.
Neocloud IREN has a connection to Canada, with a data centre in British Columbia, but is expanding in Oklahoma and Texas with gigawatt-level campuses. It is working closely with Microsoft and elevated its partnership with NVIDIA, working together to build AI factories on some of these sites. IREN raised more capital recently and NVIDIA has rights to purchase shares. IREN also pushed into the M&A arena, acquiring Mirantis, an infrastructure management software provider. The deal came as a bit of a surprise, but speaks to how IREN is emphasizing the cloud business over data centre colocation and energized land assembly. It will use Mirantis to enhance its cloud infrastructure user experience and improve operational efficiency.
The neocloud segment continues to gain in importance and we are providing a market update this week with a free webinar on May 28, 2026 at 1pm EST. We will go over some recent marketshare data and discuss why neoclouds are a key channel to market for technology vendors and a source of demand for data centre infrastructure providers. Registration is available here.
The week also saw multiple developments in a number of global markets. In Indonesia, DCI Indonesia and Princeton Digital Group raised capital for hyperscale data centre builds, while in Brazil, Tecto Data Centers is set to invest heavily in a number of builds and I Squared Capital acquired a stake in Elea Data Centers, which also operates in multiple Brazilian markets.
Finally, the past week saw us publish our quarterly update as the first quarter reporting period came to a close. The report explores various noteworthy sector themes, covering areas such as growth trends and dynamics, self-building, overflow demand, AI model infrastructure uptake, leasing patterns and M&A. We also review the recent earnings season, tracking revenue growth, bottom-line performance and CapEx commitments.
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