UII UPDATE 401 | AUGUST 2025
Intelligence Update

Data shows scale of hyperscale colocation demand

The world’s largest data center users — the hyperscalers — continue to demand more capacity across more locations to support their cloud, consumer and emerging AI businesses. However, alongside building and operating their own data centers, these hyperscalers continue to rely on colocation facilities to meet their growing requirements.

These hyperscalers do not disclose how much they spend on colocation facilities in their financial reporting, but they do specify lease expenses, which typically include rented property, such as offices, shops and warehouses.

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