Field comments on spending on compute, data centre and edge build outs for AI
Technology
1) Data centre operators are running out of space, pre-selling new space and in some cases, aggressively looking to purchase space from end users - beneficiaries include Equinix and Digital Realty Trust. 2) Examples of hyperscalers, enterprises and innovative new AIaaS operators rapidly building compute. 3) Cloud optimisation efforts being viewed as “new normal” vs. temporary headwind. 4) After years of hype but slow growth for edge computing there is evidence that use cases are developing and demand is picking up - Crown Castle was mentioned by multiple industry contacts as benefitting from MEC and Lumen from increased demand for fibre connectivity. 5) Some interesting new data centre operators with well-timed AI infrastructure: Denvr Dataworks, Applied Digital and Napatech.
Edition: 164
- 07 July, 2023