Neocloud providers drive shift in AI cloud market

Gartner forecasts that specialised "neocloud" providers will claim about 20% of the $267 billion AI cloud market by 2030. These providers build infrastructure specifically for GPU‑intensive AI workloads and emphasise data‑sovereignty, offering contracts that keep data and operations within national borders to meet GDPR and the upcoming EU AI Act requirements.

Neoclouds are positioning themselves against traditional hyperscalers by delivering higher performance for training workloads while also supporting hybrid‑multicloud architectures that allow enterprises to scale out inference workloads close to data sources. Companies face rising usage‑based pricing from major AI services, prompting a move toward greater control over where models run, how data is stored, and how workloads are interconnected.

Industry analysts advise enterprises to adopt a hybrid multicloud strategy that combines scaling‑up of large GPU clusters for training with scaling‑out of smaller, low‑latency inference nodes, thereby balancing performance, cost, and regulatory compliance.