Focus: Neoclouds
DE-CIX interconnection platform patch panel
benefi t from deterministic performance, lower and more predictable latency and far greater visibility into how data moves across their infrastructure. Peering also enables a level of control that directly aligns with emerging sovereignty requirements, allowing providers and customers to understand where traffi c is exchanged and under which jurisdiction it fl ows. We’ve entered the age of the neoclouds,
but their relevance will be short-lived unless they can succeed where hyperscalers failed. Instead of going to head to head with hyperscalers on raw compute, they need to become the “brains behind the network”, off ering speed, control and visibility at the time they’re most needed in AI’s upward trajectory and providing companies with much-needed control over their mission- critical data fl ows.
DE-CIX SR-14s FP5 router
longer-term enterprise engagement and slower hardware renewal cycles. However, inference – the real-time use of AI rather than the intensive training of models – places diff erent demands on infrastructure, prioritising consistent performance, low latency and proximity to users, and data sources above raw compute. T is is where the fundamental limitation of a compute- fi rst strategy becomes apparent, and it’s an area where neoclouds, with the right network architecture, can really shine.
Connectivity is the real diff erentiator If neoclouds move toward inference-driven workloads – and many are – the limitations of traditional connectivity models become an immediate problem. Relying on best- eff ort public Internet transit (IP transit) off ers little control over routing, latency or traffi c paths, all of which are critical for delivering consistent AI performance at scale. T is is where direct connectivity and peering at Internet Exchanges (IXs) make a real diff erence. By interconnecting directly with enterprise networks, cloud platforms and data sources, neoclouds can
www.electronicsworld.co.uk April 2026 09
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