Based on a report that Backblaze released this morning, site visitors from content material supply networks and internet hosting and Web companies suppliers have stayed largely inside historic norms over the previous yr. However site visitors from hyperscalers and neoclouds fluctuated dramatically, with steep climbs in September and October and one other uptick in March.
One other community site visitors change associated to AI is geography. “Historically, it didn’t matter the place cloud infrastructure was positioned,” says Nowak. However with AI workloads, if storage is near compute, enterprises get decrease latency and better throughput.
Right this moment, Virginia and California have a excessive focus of AI compute suppliers. This, in flip, brings in additional storage corporations. “In July, we selected to double our footprint in US East to extend the proximity to hyperscalers and neoclouds,” says Nowak.
And that, in flip, results in much more demand for compute, and even higher focus. “There’s a snowball impact,” Nowak says.
Why neoclouds for AI?
Enterprises would possibly suppose that they don’t want to fret about community site visitors particulars in the event that they’re utilizing a hyperscaler for his or her AI workloads as a result of the information and the processing each keep inside the cloud. However there are benefits to utilizing a third-party storage supplier mixed with neoclouds for the GPUs.
Based on a report released by Synergy Research Group in early April, neocloud revenues hit $9 billion within the fourth quarter of 2025, a 223% year-over-year improve. Revenues handed $25 billion for the entire yr and are anticipated to hit $400 billion by 2031.
