4. Neo-Cloud Providers: A Structural, Not Cyclical, Phenomenon

Neo-cloud providers—AI-native infrastructure platforms positioned between hyperscalers and enterprises—exist because of a structural mismatch:

• Hyperscalers optimize for scale, margin, and internal silicon.
• Advanced AI workloads demand performance density, rapid deployment, and specialized architectures.

These providers are not speculative overbuilds, but they do carry utilization and timing risk.

Divergence Drivers:

Infrastructure control (power, cooling, networking) versus colocation dependency.

Capital structure and balance-sheet endurance during slow ramps.

Demand quality, favoring anchor tenants, enterprise production workloads, and sovereign use cases over spot demand.

Sector returns will be uneven, with consolidation likely.