WSS: Earnings season underway with Meta reporting more CapEx spending as neocloud execution comes into focus amid ongoing demand
Earnings season is about to get rolling and the hyperscalers are usually among the first to report. Later this week, Amazon, Google and Microsoft will all report, and in the past week Meta shared its results. There is no cloud infrastructure business to dig into, but Meta reported its earnings and disclosed useful metrics around its CapEx, which provide context for the pace of its data centre and AI infrastructure build-out. Meta had another busy quarter building and the Muse AI service is consuming a lot of the infrastructure being built. In the last few weeks, we also looked at the results coming from Oracle and Applied Digital.
Meanwhile, the neocloud space continues to move forward with leasing activity and development, expansion and execution of infrastructure capacity. Nscale has hit a few hurdles in Europe as it continues to build data centre capacity, while it is working on an expansion with frontier lab Anthropic in West Virginia. It goes without saying that things will not necessarily move in a straight line and timeliness and execution remain top of mind for both operators and end users. All this is happening against a backdrop of ongoing steady demand.
The past week also saw a number of developments of note in Europe as Crusoe is expanding with Polar DC in Norway and Scaleway confrirmed plans to expand capacity in multiple European markets, which is sure to have a positive impact on overall demand for data centre capacity. There were also various developments around regulations and community opposition in global markets. There was some pushback in Japan and Greece is proposing new rules for power consumption from data centres.
Finally, we are going to be publishing various data points on a regular basis, meant to capture the directional trends of the sector. We have numbers for Anthropic’s revenue growth along with neocloud growth metrics from the likes of Bitdeer and Qumulus AI.
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