There is a forecast that neocloud corporations will account for 20% of the overall artificial intelligence (AI) cloud market in four years. Neoclouds are corporations that provide infrastructure specialized for AI.
Market research firm Gartner said on the 24th that by 2030 neocloud corporations will take 20% of the $267 billion (about 410 trillion won) AI cloud market.
Gartner assessed that, with the spread of Generative AI, demand for graphics processing unit (GPU)-intensive computing is increasing to an unprecedented level, expanding investment in high-performance infrastructure and exposing the limits of existing cloud models in the process. Neoclouds, focused on infrastructure optimized for AI, are shaking the dominance of existing hyperscalers such as Amazon Web Services (AWS), Google, and Microsoft (MS).
Enrique Castellá, a senior analyst at Gartner, said, "As existing cloud models fail to keep up with the surging demand for GPU-intensive workloads, an environment is emerging in which a new type of provider specialized in large-scale AI infrastructure can grow," and "neoclouds are providing differentiated value based on AI-optimized infrastructure and high-performance workloads, price competitiveness, flexible deployment models, and strong guarantees of Data Sovereignty."
Gartner analyzed that the rise of neocloud corporations and sovereign AI infrastructure is reshaping corporations' cloud strategies. It said corporations are also increasingly shifting beyond centralized global models to localized hybrid architectures. In line with this trend, some neoclouds are focusing on sovereign cloud capabilities that ensure data and operations are kept within specific jurisdictions.
Castellá said, "Corporations will be able to strengthen their AI capabilities by leveraging neocloud corporations while also securing control over Data Sovereignty and regulatory compliance."