11 Introduction Artificial intelligence workloads are changing how infrastructure is designed and deployed. Training large models, running large-scale inference pipelines, and managing data-intensive environments require infrastructure that can process massive datasets while supporting high-performance compute. These requirements have led to the emergence of a new category of infrastructure provider known as a neocloud. Neocloud providers focus on delivering infrastructure environments optimized for AI workloads. Their platforms are typically designed around large GPU clusters, high-throughput data pipelines, and storage systems capable of supporting large datasets and distributed compute environments. For organizations operating large data environments or building AI-driven platforms, understanding what a neocloud is—and how it fits into the broader infrastructure ecosystem—is increasingly relevant. What is a neocloud? A neocloud is a cloud infrastructure provider designed specifically to support AI workloads, GPU computing, and high-performance data environments. Unlike general-purpose cloud providers that support a wide variety of enterprise applications, neocloud providers focus on infrastructure optimized for: GPU-accelerated computing Large-scale AI model training High-throughput storage for large datasets High-bandwidth networking between compute nodes Distributed machine learning pipelines The defining characteristic of a neocloud platform is its AI-first infrastructure design. Compute, storage, and networking layers are built to support large-scale data processing and GPU-intensive workloads. Typical neocloud platforms provide: large GPU clusters for model training high-performance distributed storage environments infrastructure optimized for large datasets multi-region compute environments designed for AI workloads Many neocloud providers also focus on delivering large pools of GPU capacity, helping organizations access the compute resources required for modern machine learning environments. Why neocloud providers are emerging Traditional cloud platforms were built to support general enterprise workloads such as: web applications virtual machines enterprise software databases microservices AI workloads introduce different requirements. Training large machine learning models requires: thousands of GPUs operating in parallel continuous data movement between storage and compute environments extremely fast networking between nodes high-throughput storage systems capable of feeding large datasets into GPU clusters These workloads can strain infrastructure environments that were originally designed for general application hosting. Neocloud providers emerged to address this gap by designing infrastructure environments specifically for AI and high-performance computing workloads. Several trends have accelerated the development of neocloud platforms. Growth of AI infrastructure demand The rapid expansion of generative AI and large language models has significantly increased demand for GPU infrastructure. Organizations building AI platforms often require large GPU clusters but may not want to operate those environments internally. Neocloud providers address this demand by delivering infrastructure designed for large-scale AI workloads. GPU supply constraints Access to GPUs has become a strategic constraint for many organizations developing AI products. Neocloud providers frequently specialize in securing large GPU inventories and making those resources available through cloud infrastructure platforms. Specialized infrastructure requirements AI environments benefit from infrastructure designs that differ from traditional cloud architectures. By focusing exclusively on AI workloads, neocloud providers can optimize their infrastructure stack for these requirements. How neoclouds differ from hyperscale clouds Hyperscale cloud providers deliver a wide range of infrastructure services, including compute, storage, databases, analytics platforms, and application development environments. Neocloud providers typically focus on a narrower set of infrastructure capabilities designed specifically for AI workloads. Infrastructure areaHyperscale cloudNeocloudPrimary focusgeneral-purpose enterprise cloud servicesAI infrastructure and GPU computingComputewide range of VM typesGPU clusters optimized for trainingStoragebroad storage portfoliostorage optimized for large AI datasetsNetworkingstandard cloud networkinghigh-bandwidth GPU cluster networkingTarget workloadsdiverse enterprise workloadsAI, HPC, and large-scale data processing Many organizations use both models. Hyperscale environments may host application platforms and enterprise services, while neocloud infrastructure can support AI model development or large-scale training environments. Core infrastructure components in neocloud environments Neocloud platforms typically combine several infrastructure elements designed to support large-scale data processing and GPU computing. GPU compute clusters GPU clusters are the foundation of most neocloud platforms. These clusters enable distributed training environments that allow large machine learning models to be trained across thousands of GPUs. Typical infrastructure components include: large pools of GPUs such as NVIDIA A100 or H100 high-speed GPU interconnects large-scale compute clusters designed for parallel workloads Efficient communication between GPU nodes is critical to achieving scalable model training. High-performance storage for AI datasets AI environments generate and process extremely large datasets. Storage systems must be capable of supporting high levels of throughput while enabling parallel access from large compute clusters. Common requirements include: high read and write throughput parallel data access for distributed training large-scale dataset storage durable storage for training artifacts and model outputs Object storage platforms are frequently used as the persistent storage layer for AI environments because they can scale to support large data lakes and distributed training workflows. High-bandwidth networking Large-scale AI workloads depend on efficient communication between compute nodes. Neocloud environments typically deploy high-performance networking architectures designed for: low-latency communication between nodes high bandwidth for distributed workloads efficient scaling of GPU clusters These networking capabilities allow training workloads to scale across large infrastructure environments. Multi-region infrastructure Many neocloud providers operate infrastructure environments across multiple regions. Multi-region deployments allow organizations to: scale training workloads across larger compute pools support geographically distributed development teams maintain resilience across infrastructure environments These capabilities can be particularly important for organizations building large AI platforms. Common neocloud use cases Neocloud platforms are commonly used for workloads that require large-scale GPU infrastructure and high-performance data environments. Training foundation models Organizations developing large language models or other foundation models rely on large GPU clusters to train these systems. Neocloud infrastructure provides environments capable of supporting distributed training across thousands of GPUs. AI product development Companies building AI-driven products frequently rely on GPU infrastructure for both model training and inference. Neocloud platforms allow organizations to scale compute environments as models evolve and workloads grow. High-performance computing environments Many HPC workloads benefit from GPU acceleration. Industries that frequently rely on HPC environments include: life sciences genomics research aerospace engineering scientific research institutions These environments often require infrastructure capable of processing large datasets and complex computational workloads. Data-intensive analytics environments Large-scale analytics environments may also rely on GPU infrastructure to process complex datasets. Neocloud platforms can support data pipelines that combine GPU compute with large-scale storage systems. The importance of storage in AI infrastructure While GPU compute resources often receive the most attention in AI infrastructure discussions, storage systems play a critical role in enabling large-scale machine learning workflows. Training pipelines depend on efficient access to large datasets. These workflows typically involve: ingesting large volumes of data delivering training data to GPU clusters storing intermediate model checkpoints managing model artifacts and outputs Storage systems must support these processes while maintaining durability and scalability. Object storage environments are commonly used as the foundation for AI data lakes because they allow organizations to store large datasets while supporting distributed access from compute clusters. For organizations building large AI platforms, storage architecture becomes a central component of overall infrastructure design. Infrastructure challenges neocloud providers must address Operating large-scale AI infrastructure environments introduces several technical challenges. Data movement efficiency AI training pipelines require constant movement of large datasets between storage systems and compute clusters. Inefficient data movement can slow training processes and reduce overall infrastructure efficiency. Operating infrastructure at scale Managing large GPU clusters requires careful infrastructure design, including power, cooling, networking, and cluster orchestration. Data durability and cyber resilience Training datasets and model artifacts often represent valuable intellectual property. Infrastructure environments must support strong data protection capabilities, including durability and protection against cyber threats such as ransomware. Infrastructure cost efficiency GPU resources are expensive, and inefficient data pipelines can lead to idle compute resources. Optimizing storage and data access patterns can improve overall infrastructure efficiency. Why neocloud platforms are becoming important for enterprise infrastructure Neocloud providers represent an emerging category of infrastructure platforms designed to support AI and large-scale data processing environments. As organizations continue to expand their use of machine learning and AI technologies, demand for infrastructure environments optimized for these workloads will likely continue to grow. Neocloud platforms address several requirements associated with AI infrastructure, including: access to large GPU clusters infrastructure environments optimized for distributed AI workloads scalable data storage environments high-performance networking between compute nodes For many enterprises, these environments complement existing infrastructure strategies that may already include traditional data centers and hyperscale cloud platforms. Summary A neocloud is a specialized cloud infrastructure provider designed to support AI workloads, GPU computing, and high-performance data environments. By focusing on GPU clusters, high-throughput storage, and infrastructure designed for distributed workloads, neocloud platforms enable organizations to train large models, operate AI platforms, and manage large-scale data environments. As AI adoption continues to expand across industries—including financial services, research institutions, life sciences, and infrastructure providers—specialized infrastructure platforms are likely to play an increasing role in enterprise architecture.