The rise of Neocloud in the AI landscape

The rapid adoption of AI is creating opportunities for innovation, and a new generation of specialised cloud providers is emerging to support these computational demands. With AI workloads requiring power densities exceeding 100 kW per rack and the Neocloud segment experiencing a remarkable 82% five-year CAGR in revenue growth, organisations are discovering how specialised GPU cloud providers can unlock new possibilities for AI development. This research explores how Neocloud providers are working with enterprises to transform data centre infrastructure, delivering solutions that can reduce costs by up to 66% compared to traditional approaches while accelerating deployment timelines for AI innovations.

The Neocloud ecosystem comprises approximately 190 distinct operators, with major providers including CoreWeave, Nebius, and Crusoe. These providers offer specialised GPU capabilities through Graphics Processing Units-as-a-Service (GPUaaS), essential for AI, blockchain, gaming, and scientific workloads. Recent market highlights demonstrate strong momentum: CoreWeave's stock nearly tripled since its March IPO, Nebius secured $700 million funding in 2024 and an additional $1 billion in 2025, and S&P Global reported over $10 billion allocated to this sector last year.

• Neoclouds can deploy high-density GPU infrastructure within months compared to multi-year builds for hyperscale data centres, providing crucial time-to-market advantages for businesses needing rapid AI development
• AI workloads favouring computing power over location enhance Neocloud site flexibility and cost-effectiveness, with providers like Lambda Labs offering competitive pricing compared to AWS and Google Cloud
• Neoclouds maintain a complementary relationship with hyperscalers rather than direct competition, with recent partnerships showing hyperscalers investing in Neocloud growth whilst maintaining access to their cloud ecosystem
• Neocloud facilities create new revenue opportunities through waste heat monetisation partnerships due to high heat generation from GPU clusters
   

Download our report today to discover how Neocloud providers are transforming AI infrastructure and creating new opportunities in the data centre market.