"The purveyors of neocloud services specialise primarily in the provision of the graphics processing units (GPU) infrastructure needed to run AI workloads, and - for this reason - are sometimes referred to as being GPU-as-a-service (GPUaaS) providers. This is in contrast to the more traditional hyperscale providers who offer a broader range of cloud services, rather than just GPU infrastructure services."
"However, it predicts that the revenue generated by neoclouds will hit $180bn by 2030, albeit with "road bumps" along the way, in the form of financing difficulties, power supply issues and problems sourcing the necessary hardware. However, it is SRG's view that the underlying demand for AI services will help the neocloud sector overcome these barriers and other competitive pressures, on account of the fact that providers are targeting the fast-growing AI segment."
Neocloud service providers that specialize in GPU infrastructure are generating rapid revenue growth, surpassing $5bn in Q2 2025 and expected to exceed $23bn for 2025. These providers focus on GPU-as-a-service for compute-intensive AI workloads while traditional hyperscale clouds offer a broader set of cloud services. Multiple neoclouds are expanding datacenter capacity to host generative AI compute. Market forecasts project neocloud revenue reaching $180bn by 2030, though growth may face financing difficulties, power supply constraints and hardware sourcing problems. Strong underlying demand for AI services and targeted offerings should help neoclouds navigate competitive and operational obstacles.
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