October 2025: The AI Infrastructure Build: What Does It Mean for You and Your Customers?

[00:00:00] This is Sales Globe Signals and I'm Mark Danolo. The AI infrastructure build. What does it mean for you and your customers? [00:00:08] In Sales Globe Signals, we ask two questions. What are the market signals? And what does it mean for profitable revenue growth? [00:00:18] Here's what you need to know. [00:00:20] AI infrastructure spending is exploding, up 72% annually since 2020. [00:00:26] Hyperscalers are driving demand across multiple categories and controlling over 98% of US non utility power. Agreements, enablers and suppliers are the main beneficiaries, spanning semiconductors, power, cooling, real estate and construction. [00:00:43] Massive capital is flowing into the AI infrastructure build while we're in the investment phase, anticipating future AI returns. [00:00:51] The opportunity is vast but selective at each level for organizations who can solve problems around differentiation, speed, power and scalability. [00:01:02] Behind AI benefits is the big build and opportunities await. [00:01:06] What are the market signals? [00:01:08] Much of the excitement around AI is about how it might change our lives, replace jobs, change our careers, or what it might make obsolete. [00:01:17] But there's a massive movement behind all that excitement, driven by the build of all the infrastructure it takes to make AI work. From data centers to chips to people and power, this megatrend is having a huge impact in our economy and could provide a tremendous opportunity for your business Signal. [00:01:35] The build is massive and a wave that you should not miss. [00:01:40] What does the AI infrastructure build? [00:01:42] It's the physical construction behind powering AI and a global race to create the power, space and silicon that intelligence runs on. [00:01:50] When you access AI, whether through an enterprise application or your favorite open platform, there's a global scale investment underway that powers it. That includes data centers, chips, power systems, cooling and networks. And this investment has become a macroeconomic force. [00:02:08] The parties involved in the industrialization of intelligence include hyperscalers, utilities and investors, pouring hundreds of billions of dollars into energy, real estate and hardware capacity to support exponentially growing AI workloads. [00:02:22] What began as a cloud computing expansion has become an infrastructure arms race, reshaping energy demand, construction cycles and capital flows. [00:02:32] In short, the rate of investment in data centers and AI infrastructure is staggering, expanding at a 72% compound annual growth rate since 2020, with a total annual spend of $450 billion in 2024 and estimated at 600 billion in 2025. [00:02:49] A majority of that spending is driven by compute and power, about 55% together, followed by real estate, building and cooling. [00:02:58] Let's get specific about this spend signal. [00:03:02] Hyperscalers are the forefront of demand. [00:03:05] Looking at demand with the hyperscalers at the source, it can help us see where the opportunities begin. [00:03:10] Hyperscalers These are the companies doing the heavy lifting and writing the biggest checks. They're constructing or leasing vast new data center capacity and buying the compute networking energy to run it. [00:03:22] How big are those checks? Their CAPEX budgets are dominated by investment in data centers. As an example, Microsoft alone will exceed $80 billion in annual capital spending, most of it tied to AI capacity. [00:03:35] The hyperscalers are also funding custom chip programs to control costs and supply signal. A network of downstream providers provides supply and additional demand. [00:03:47] Downstream from the hyperscalers are the providers of technology, power, facilities, speed and differentiation. [00:03:55] If your organization is one of these groups, you might be tapping directly into hyperscaler demand. [00:04:01] If your organization can provide value to these downstream providers, then they can become a source of demand for you. These are the companies selling the power, silicon and steel that hyperscalers consume. They're the major beneficiaries of the build out, often seeing multi year demand surges in long term contracts. [00:04:18] While the hyperscalers are at the source of the flow, many of these providers and suppliers are seeing a surge in predictable demand and are having to scale up to meet it. [00:04:27] Financial and infrastructure investors. [00:04:29] This group is made up of the investors, funds and asset managers financing or owning the underlying infrastructure. They're turning AIs insatiable power and space demand into long term investments that deliver returns. [00:04:42] They see AI as digital infrastructure investment with tangible cash flow similar to energy pipelines or toll roads. Right now we're clearly in the investment phase and the markets are patiently anticipating returns in the midterm. [00:04:56] What does this mean for profitable revenue growth? [00:04:59] Now that we know some of the big signals around the AI infrastructure build, think about whether your organization provides products and services to the company selling into the demand stream that leads from the build. [00:05:09] To recap, these signals are the fact that the build is massive. [00:05:14] Hyperscalers are at the forefront of demand and there's a network of downstream providers providing supply and additional demand. [00:05:22] Which customers should you target? [00:05:24] I think of the organizations involved in the AI infrastructure build in terms of flows and demand originating from the headwaters and flowing to the tributaries. You may dip in and find your greatest value at any point. [00:05:36] Your organization may be one of these companies in the flow or may be outside the mainstream and provide value to the companies in the flow. [00:05:44] Let's break them down by the segments we discussed earlier. [00:05:47] Headwaters, hyperscalers and emerging hyperscalers. Hyperscalers. [00:05:53] First, let's start with the source of the huge river of demand. [00:05:57] At the top of the flow are the hyperscalers. Most of the downstream Demand for the goods and services from the suppliers, enablers and investors flows from this source. [00:06:07] The large hyperscalers are facilities based and own their own data centers and real estate and can scale their global compute capacity. [00:06:15] They include Microsoft, Amazon, Google, Meta, Oracle and Apple. These companies drive most of the upstream demand for AI compute capacity, GPU allocation, networking and power. [00:06:28] For context on their impact, let's look specifically at power demand. [00:06:33] Through their agreements, the hyperscalers now control over 98% of the non utility power procurement market in the U.S. [00:06:40] although their actual power usage is far below what they reserved. [00:06:44] So together the hyperscalers are a true macroeconomic force. Emerging Hyperscalers the emerging hyperscalers consume and manage compute at a large scale. Although they may not have global infrastructure like their bigger hyperscaler siblings, these companies are also huge demand generators and some may be on a faster growth trajectory than the large hyperscalers. A company in this group may emerge from the unknown and create unexpected skyrocketing demand. For example, while the names of these companies are familiar today, think about which ones you hadn't heard of just three years ago. They include companies like OpenAI, XAI, with Grok, Lambda and 4V. [00:07:23] Because of their rapid growth in time, some of them may graduate to the hyperscaler tier, taking both groups together. If your organization provides products or services that align with the needs of these companies and consider how you can create value as a general starting point. Hyperscalers and emerging hyperscalers need strategic differentiation. [00:07:43] Like most companies, they need to differentiate to compete in their markets. But because compute and storage are fungible and can become commoditized, the need to differentiate in areas like performance, ecosystem integration and partnerships is especially important for hyperscalers. If your professional or technical services or products can help them with that challenge. The need this may be a value point for you. [00:08:06] Power, Security and Availability Electricity is the top constraint for the hyperscalers. They need guaranteed delivery from multiple sources with storage options and redundancy like N2 backup. Because of their scale, they can work directly with energy producers bypassing retail utilities. [00:08:25] So if you're in power then more power to you. [00:08:28] Compute capability and hardware optimization. [00:08:32] At the core of their compute capability, hyperscalers need customized AI, chip and data center networking development on a fast and flexible basis with redundancy and without reliance on a single vendor. This area has attracted the most attention in the business press with familiar names like Nvidia and others, and it's second only to AI data center power demands. [00:08:52] AI compute has become a top strategic priority for manufacturers to cash in their chips. [00:08:58] Thermal efficiency and Cooling AI is hot and data centers also run hot. Data center high wattage racks require advanced liquid and air cooling systems. [00:09:08] They also require reduced water usage and more energy efficient systems. If your organization provides climate control, this could be a very cool opportunity. [00:09:17] Construction Speed and Scale Traditional construction takes time, but AI demand is outpacing traditional building cycles. [00:09:25] Hyperscalers need faster and more scalable building, real estate, zoning and permitting solutions to continue their rapid growth. So if your company can provide accelerated turnkey solutions, you might build upon this sustainability and ESG alignment With their massive power demand, potential environmental impacts and high degree of visibility, this is one industry that can't downplay sustainability. [00:09:49] Most of the hyperscalers have environmental targets and are focused on lowering their carbon footprints and as well as those of their supply chains. [00:09:57] So if your organization can help fulfill their ESG goals and tell their story to the world, you may have a sustainable opportunity. [00:10:04] Tributaries Providers and Suppliers these companies feed into hyperscaler demand by providing the essential components the hyperscalers rely on. [00:10:13] It's no coincidence that these companies fall into categories that align directly with the needs of the hyperscalers I described before. [00:10:21] Understand their needs and how your products and services align with them and you may connect to help these organizations accelerate how they serve the hyperscalers. The tributaries include semiconductors and compute providers. These companies design and fabricate the core processing and acceleration chips used in AI servers, networking gear and edge devices. They include organizations like tsmc, Nvidia, Broadcom, AI, amd, Intel, Samsung, Foundry, ARM and Marvell Networking and Interconnect. These companies build and sell networking hardware and components that physically move AI workloads between servers and clusters. They include organizations like Arista Networks, Cisco, Juniper, Infineria, Lumentum, Coherent and Commscope. [00:11:10] Cooling, Power and Infrastructure these companies design and manufacture the systems that power and cool high density AI data centers, ensuring uptime efficiency and thermal stability at massive scale. [00:11:24] They include organizations like Vertiv, Schneider Electric, Trane Technologies and Johnson Controls. [00:11:30] Storage and Data Management these companies build the high performance storage and data platforms that feed AI models and manage petabyte scale datasets for for training and inference. [00:11:42] They include organizations like Pure Storage, NetApp, Micron and SK, Hynix Construction and Real Estate Developers these companies design, build and deliver the large scale physical campuses that house AI data centers. From site development and engineering to modular high density construction, they provide the foundation that reach and hyperscalers lease, own or operate. They include organizations like DPR Construction, Bechtel, aecom, Jacobs Compass Data Centers, Stack Infrastructure Aligned Data Centers and Vantage Data Centers. [00:12:17] Energy and Utilities these companies generate and deliver the massive amounts of electricity that AI infrastructure requires, including renewable power sources and grid scale transmission. [00:12:28] They include organizations like Nextera Energy, Duke Energy, Brookfield Renewable, Cyrus One and Orsted. These firms carry the heavy flow of materials, technology and expertise that make the AI infrastructure possible. [00:12:44] Midstream the Capital Enablers and Operators the midstream is where the headwaters and tributaries come together, the channel of investment and execution that enable hyperscaler demand with funding and execution added to the hyperscalers and tributaries. This is a third level where you may explore how your products and services can help them achieve their goals. [00:13:04] The midstream includes private equity and infrastructure funds. [00:13:09] These firms finance, acquire and operate large scale data center and energy assets that underpin the AI economy providing long term capital and project management expertise. They include organizations like BlackRock, Brookfield, KKR, Blackstone, Macquarie, MGX Fund Management and Digital Bridge Data Center REITs. These companies own and lease Mission Critical Data center real estate offering hyperscalers and enterprises access to secure scalable and power dense facilities. They include organizations like Equinix, Digital Realty, Iron Mountain Data Centers and qts. [00:13:46] Joint Ventures and Strategic Partnerships these collaborations bring together technology providers, investors and utilities to fund and operate next generation AI infrastructure combining capital with technical capability. They include initiatives like the Microsoft Brookfield Renewable Energy partnership, the Nvidia BlackRock AI Infrastructure Fund and other hyperscaler and energy development joint ventures like the recent partnership between OpenAI, AMD and Broadcom. [00:14:13] Downstream and Delta Developers and Users Downstream are the application developers and enterprises that commercialize the flow from the AI infrastructure build. They create ROI from users in the broader economy, the Delta feeding the great benefits we ultimately expect from AI. [00:14:30] 10 questions about your customer strategy for the AI infrastructure build each of these suppliers and enablers has its own needs based on their industry. [00:14:39] To set your direction Here, here are 10 questions you may ask your organization. [00:14:44] 1. Where does our business sit in the AI infrastructure flow at the headwaters, tributaries, Midstream or other providers to these groups? [00:14:53] 2. [00:14:54] Which companies are investing most aggressively in AI infrastructure and how can we align with their priorities? [00:15:00] 3. Do we understand the hyperscalers and emerging hyperscalers specific needs around power, Compute and sustainability? [00:15:08] 4. What part of our value proposition directly supports the top constraints in the build power, availability, speed or scalability? [00:15:17] 5. Where can we create strategic partnerships with enablers, suppliers or investors to move closer to the flow of capital and demand? [00:15:26] 6. How do we position ourselves as a differentiator not just a vendor in solving problems for these customers? [00:15:33] 7. Are we building internal capabilities fast enough to keep pace with the AI driven infrastructure needs of the types of companies our offers May align with? [00:15:42] 8. [00:15:43] Is sustainability in ESG part of our competitive advantage for AI related customers? [00:15:48] 9. What early indicators like permits, utility agreements and capital raises can we track to see where the next wave of infrastructure growth will occur? [00:15:58] 10. [00:15:59] Given our capabilities, if we could design one new offering today for the AI infrastructure economy, what would it be and who would it serve first? [00:16:08] Your call to Action each of the questions that apply to your organization should prompt valuable conversation and ideas around your business and your customer strategy for the AI Infrastructure build Look at each of the signals we discussed around the drivers of AI infrastructure demand, the needs of each segment and how your offers could align. [00:16:26] Then consider their impact from two perspectives. [00:16:29] How might they affect your customers and their ability to grow? And how will they affect your business? [00:16:34] Get beyond current state and ask your team where they see the signals projecting ahead and what this means for your organization's profitable growth. [00:16:41] Consider each of the questions I've asked, add your own, create a plan and get into action. [00:16:49] Salesglobe Signals is about seeing a bigger macro view on growth and and taking actions that will help you reach your growth aspirations. To learn More about how SalesGlobe can help your business, visit [email protected].