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Diving overview:
- With accelerating computing demands and growing regulatory concerns for AI workloads, Major companies consider cloud options Beyond traditional hyperscalers. Gartner predicts that neocloud providers offering AI-optimized infrastructure will be profitable by 2030. 20% of $267 billion competitive AI cloud market. AWS, Microsoft, Google It holds the largest share of the entire cloud market.
- Neocloud providers specialize in supporting AI and high-performance workloads, and the growing demand for GPU-intensive computing positions cloud companies as an alternative to hyperscalers. Enrique Castella, Gartner Senior Director Analystsaid in a press release. Data sovereignty requirements imposed by other countries also make neo-cloud providers’ strong technical control over data attractive.
- “Neocloud offers differentiation through superior performance on AI workloads, flexible deployment models, and a strong commitment to data sovereignty, often at a more competitive price point,” said Castera.
Dive Insight:
Neocloud providers are accelerating toward increasing their share of the AI cloud market as enterprises, hyperscalers, and frontier model providers alike begin to secure the compute they need for AI workloads.
Neocloud revenue achieved $9 billion in Q4 2025, up 223% year over yearAccording to , the demand for GPU computing has exceeded the capabilities of hyperscalers. April report From the Synergy Research Group. Neocloud provider Nebius last year Partnered with Microsoft to Provide AI infrastructure. Meanwhile, CoreWeave has entered the market. be multi-year contract In April, we partnered with large-scale language model provider Anthropic to power the Claude family of AI models.
Because neocloud partners with hyperscalers and LLM providers to provide compute, it is also becoming an option for companies looking to diversify their cloud portfolio and support AI projects. As AI expands across the enterprise; CIOs think strategically Learn about different options for AI workloads.
Technology leaders should prioritize hybrid architectures and evaluate offerings from neocloud providers. This will enable improved access to compute to support high-performance AI workloads and stronger technical controls to ensure data sovereignty, Castella said.
According to Gartner, companies operating around the world are facing data sovereignty requirements imposed by GDPR obligations and EU AI laws, increasing their focus on where AI data is stored and processed. Growing geopolitical concerns It also encourages businesses to consider local digital resilience.
Global Sovereign Cloud Spending expected to increase 35.6% According to another Gartner report, this year
“Organizations can leverage neocloud providers to enhance their AI capabilities while maintaining greater control over data sovereignty and regulatory compliance,” said Castera. “These providers also enable businesses to innovate faster by providing more flexible access to high-performance infrastructure customized for their AI workloads.”
