Neocloud

Neoclouds build or lease data centers, fill them with GPUs and high-speed networking, and rent the capacity to AI labs, enterprises and sometimes hyperscalers, often under multiyear contracts. Some began as crypto miners or GPU traders and repurposed their power and facilities for AI. Their offerings are narrower than full cloud platforms but optimized for large AI workloads.

Neoclouds have grown quickly by securing scarce GPUs and power faster than incumbents. Many finance expansion with significant debt, including loans secured by GPUs and customer contracts, so their risk profile depends on customer concentration, contract length, chip depreciation and refinancing conditions. Backlog and contracted revenue are closely watched metrics.

For allocators, neoclouds offer high-growth exposure to AI demand with elevated leverage and counterparty risk. Example: a former bitcoin miner converts a site with existing power capacity into an AI data center and signs a multiyear lease with an AI lab, financing the GPUs with asset-backed debt.