The AI cloud market is growing, driven by surging GPU demand and enterprises’ desire for stronger data controls.
According to Gartner, predicts specialised neocloud providers will capture about 20 percent of the projected US$267 billion AI cloud market by 2030.
Neoclouds are clouds built specifically for AI and high-performance workloads. They are winning business by offering optimised compute, flexible deployment models and tighter technical controls for data sovereignty at competitive prices.
“While US hyperscalers are launching their own sovereign offerings, a new wave of specialised neocloud providers is gaining significant traction,” said Enrique Castera, Senior Director Analyst of Gartner.
“These neoclouds are differentiated by their focus on AI-optimised infrastructure and high-performance workloads. Some also focus on sovereign cloud capabilities, ensuring data and operations remain within specific jurisdictions. Sovereign neoclouds provide contractual guarantees that some or all aspects of the cloud environment, such as data, operations, and governance, remain confined to national boundaries, protecting them from foreign legal claims and extraterritorial access,” he added.
Leading neoclouds providers include CoreWeave, an infrastructure partner for large model training and inference, and Nebius, an enterprise-focused AI infrastructure provider. Several regional specialised players also pair local data governance with GPU capacity for regulated industries.
CoreWeave has signed multi‑year deals to power major model families, notably providing compute for Anthropic’s Claude models. Nebius has been expanding partnerships with hyperscalers and enterprise customers to deliver managed AI platforms and hybrid deployments, bridging on‑premises enterprise requirements and cloud‑native AI needs. Regional neoclouds are carving niches serving sectors with strict sovereignty rules and latency constraints, offering locally hosted GPU clusters and compliance features attractive to governments and regulated firms.
As AI compute demands increase, enterprises are increasingly turning to these providers to diversify AI supply chains and close capacity gaps left by hyperscalers, which still hold the largest overall cloud market share but have struggled to meet exploding GPU needs.
Neocloud revenues surged in 2025 to reach US$9 billion in Q4 and growing more than 200 percent year over year. The momentum is set to continue as enterprises race to secure high-performance compute.
“Organisations can leverage neocloud providers to enhance their AI capabilities while maintaining greater control over data sovereignty and regulatory compliance. These providers also enable enterprises to innovate faster by providing more flexible access to high-performance infrastructure tailored to AI workloads,” said Castera.
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