Digital infra/STRUCTURE Weekly Update: Hyperscale pullbacks collide with trade turmoil in AI-driven infrastructure shift

Microsoft has scaled back infrastructure commitments in various regions, citing long-term capacity optimization and technology evaluations as key reasons, while maintaining its $80 billion CapEx commitment for the fiscal year.

Google Cloud remains committed to growth, planning $75 billion in CapEx for 2025, and may have taken over some of Microsoft's abandoned commitments.

US global trade policy, including tariffs, poses challenges for the data centre sector, potentially increasing costs and disrupting supply chains, though scaled operators may benefit from optimization efforts.

Geopolitical factors and trade uncertainties are expected to impact infrastructure development, but the sector continues to see strategic investments and M&A activity.

Carrier hotels and connectivity-focused assets remain highly sought after, with notable acquisitions like CoreSite's purchase of a strategic asset in Denver.

GPU cloud expansion is ongoing, with new deployments and funding rounds, such as NexGen Cloud's $45 million Series A and NVIDIA-based GPU deployments in the Nordics.

Operators are targeting AI inferencing workloads with smaller deployments and advanced hardware, as seen with Akamai's new cloud infrastructure.

The data centre and hyperscale sectors continue to evolve, balancing challenges like trade disruptions with opportunities in AI, cloud, and connectivity.