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Monday, April 20, 2026
Owning The GPU Boom: A Data Center Play
By Century Financial in 'Investment Insights'
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Key Highlights
- $3.3 Trillion Cumulative Data Centre CAPEX by 2029
- 41% of Executives Rank AI Infrastructure as Top-3 Priority — GPUaaS demand is structural, not cyclical; companies prefer leasing compute over building/owning (lower capex, faster deployment).
- $100B+ in Hyperscaler GPU Leases on 5-Year Contracts — Multi-billion dollar contracts locked in through 2031; provides multi-year visibility for neocloud operators and infrastructure providers.
- Crypto Miners Turning Into Compute Infra Providers — IREN, CLSK, CIFR, WULF have low-cost power + infrastructure already built; pivot to AI = instant profitability without greenfield capex.
- H100 Rental Prices Rising — GPU shortage remains acute, benefiting anyone with capacity to rent or infrastructure to lease.
- Microsoft ($172B), Amazon ($165B), Google Leading Spend — Cloud giants investing massively in capacity, but also leasing from neocloud providers (CRWV, NBIS, others) to supplement compute needs.
Rising Investment in Data Centres
The digital infrastructure boom is continuing at a rapid pace. The capital expenditure of the largest hyperscalers globally is seen close to $750 billion this year, against a little less than $450 billion last year. Total cumulative CAPEX is expected to reach $3.3 Trillion by 2029.
For reference, Microsoft is on track to be the second-largest spender among major tech companies in 2026 behind Google, with projected capex exceeding $172 billion. The bulk of this is expected to go toward building or leasing AI-enabled data centres. Amazon is expected to spend around $165 billion, up 71% over 2025. Oracle has experienced the largest increase in cloud demand and new orders. For calendar 2026, we expect $58 billion in capex, implying 63% annual growth from $35 billion in 2025.
GPU-as-a-Service Powering the Way
Readily available AI infrastructure tops the list of priorities for most C-suite executives, according to a recent Bloomberg cross-industry enterprise survey. This suggests that neocloud providers are unlikely to see any demand contraction anytime soon. Based on this survey of more than 600 executives, over 40% of them ranked infrastructure for AI deployment among their top three priorities, with 19% listing it at the top. This is because building compute capacity from scratch requires a lot of time and capital, and instead can easily be leased from data centers.
The health of neocloud companies – notable for their GPU-as-a-service (GPUaaS) business model, and high optimization for AI workloads – continues to be an important indicator of broader market sentiment toward demand for AI compute. Over the six months up to March 2026, leases signed by hyperscalers for compute capacity provided by the neoclouds is expectd to be worth over $100 billion. The majority of the contracts are on five-year terms, with capacity being delivered from 2026.
Further, a powerful upcoming trend observed in this space is the transformation of bitcoin mining companies into AI data centre operators. Companies such as CleanSpark, IREN, Cipher, and TeraWulf are pivoting toward AI infrastructure. AI data centres can generate up to 25 times more revenue per kilowatt-hour than bitcoin mining, making the shift compelling despite higher initial investment.
These firms had already secured low-cost power sources, advanced cooling systems, and high-density electrical setups during the crypto boom. Those same assets are now being reused for GPU clusters built around Nvidia’s H100 and other AI-focused chips, which require similar high-power environments but deliver significantly higher economic value. These companies are increasingly supplying the compute capacity to the likes of OpenAI, Google, Microsoft, and other model developers.
H100 Data Centre Rental Prices
Source: Bloomberg
The rising prices of H100 data centre rentals underscore the continuously rising demand for high-performance computing. This is expected to benefit companies that rent GPU processing capacity-as-a-service.
With billions expected to flow into AI over the next several years, companies appear positioned to benefit from a sustained demand boom spanning cloud, enterprise, and the rapidly evolving AI data-centre ecosystem.
Stock Snapshot
| Name | Sector | 52 Week Low | *Last Price | 52 Week High | Market Capitalization (Billions) | Analyst Target Price | Price Appreciation | Discount from 52-week high |
|---|---|---|---|---|---|---|---|---|
| Oracle Corp | Software | $121.24 | $155.62 | $345.72 | $447.57 | $241.18 | 55% | -55% |
| CoreWeave Inc | Computer Services | $33.52 | $110.27 | $187.00 | $59.23 | $124.06 | 13% | -41% |
| Nebius Group NV | Consumer Digital Services | $20.25 | $154.56 | $159.50 | $39.11 | $176.85 | 14% | -3% |
| IREN Ltd | Computer Services | $5.24 | $43.07 | $76.87 | $14.31 | $76.50 | 78% | -44% |
| Terawulf Inc | Computer Services | $2.19 | $19.45 | $20.21 | $8.25 | $25.73 | 32% | -4% |
| Cipher Digital Inc | Computer Services | $2.20 | $17.76 | $25.52 | $7.19 | $28.63 | 61% | -30% |
| Cleanspark Inc | Software | $7.03 | $10.76 | $23.61 | $2.75 | $19.42 | 80% | -54% |
| Name | Total Analyst Recommendations | Recommendation Consensus (Out of 5) | Beta | 30 Day Volume | ISIN Number | ||
|---|---|---|---|---|---|---|---|
| Buy | Hold | Sell | |||||
| Oracle Corp | 40 | 9 | 1 | 4.52 | 1.43 | 27,196,268 | US68389X1054 |
| CoreWeave Inc | 21 | 11 | 3 | 4.03 | 1.15 | 26,744,494 | US21873S1087 |
| Nebius Group NV | 11 | 4 | 0 | 4.4 | 2.77 | 17,759,884 | NL0009805522 |
| IREN Ltd | 11 | 3 | 1 | 4.27 | 2.75 | 32,453,284 | AU0000185993 |
| Terawulf Inc | 14 | 0 | 0 | 4.93 | 3.08 | 29,870,226 | US88080T1043 |
| Cipher Digital Inc | 16 | 0 | 0 | 4.94 | 3.5 | 24,685,106 | US17253J1060 |
| Cleanspark Inc | 14 | 0 | 0 | 5 | 2.38 | 19,092,218 | US18452B2097 |
Stock Descriptions
Oracle Corp
Oracle is expected to capture a significant share of enterprise AI infrastructure spend and is positioned for one of its strongest growth cycles in decades. This is driven by a comprehensive portfolio spanning Oracle Cloud Infrastructure (OCI), multi-cloud databases deployed across AWS, Azure and Google, autonomous database services and a landmark AI partnership with OpenAI under Project Stargate. OCI revenue could grow above 70% year-over-year through FY26 and into FY27, with cloud total revenue targeted to exceed 40% growth as infrastructure and SaaS accelerate together. Oracle's $50 billion gross CAPEX plan for FY26 will exert near-term pressure on free cash flow, which turned sharply negative in Q2, but is expected to monetize rapidly given that the majority of its $523 billion RPO backlog is already booked. Surging multi-cloud database adoption, can drive OCI revenue above its own internal forecasts. The broader US enterprise and sovereign AI buildout is prioritizing reliable cloud infrastructure at scale, which could further benefit Oracle.
CoreWeave Inc
CoreWeave is expected to capture an outsized share of the rapidly expanding AI-optimized cloud infrastructure market and is positioned for continued hypergrowth as demand broadens from hyperscalers to enterprise and sovereign customers. This is driven by a purpose-built platform of Nvidia GPU clusters, AI training and inference workloads, and an expanding customer base that includes Microsoft, Google, Meta and OpenAI. Revenue could more than double to $12–13 billion in 2026, with an annualized run rate exceeding $30 billion by end of 2027 as contracted capacity converts. CoreWeave's gross CAPEX of $30–35 billion in 2026 more than double 2025 levels, will constrain near-term profitability, with operating margins bottoming in early 2026 before recovering toward a long-term target of 25–30%. Continued GPU supply tightness and pricing resilience for Nvidia H100 and A100 chips can drive revenue upside above plan. The proliferation of AI demand from foundation models into enterprise, government and sovereign deployments could significantly expand CoreWeave's total addressable market.
Nebius Group NV
Nebius Group is a pure-play AI infrastructure company building data centres, cloud software, and GPU capacity. What makes Nebius distinctly different from its peers is that it designs and builds its own servers, racks, and data centres in-house, giving it better cost control and stronger margins. The business is now anchored by two landmark hyperscaler contracts. Microsoft has committed up to $19.4 billion, and Meta has signed a five-year deal worth up to $27 billion. NVIDIA's own strategic investment in Nebius and its preferential access to the newest chip architectures further strengthen its competitive position. Based on Q4 2025 results reported on 12 February 2026, Nebius reported quarterly revenue of $227.7 million, up 547% YoY, with the core AI Cloud segment contributing $214.2 million, roughly 94% of total revenue. Looking ahead, Nebius guided for 2026 revenue of $3.0 to $3.4 billion.
IREN Ltd
IREN is positioned to capture a significant share of the surging global demand for AI computing infrastructure, underpinned by its unique combination of large-scale data centres, renewable energy assets, and a growing fleet of NVIDIA GPUs across the United States and Canada. This is driven by a dual-engine business model spanning Bitcoin mining and AI Cloud services. The major growth driver for IREN is its data centre segment. The data centre segment is now anchored by a $9.7 billion, five-year contract with Microsoft. The company is targeting $3.4 billion in annualised revenue by the end of 2026. As AI Cloud becomes the larger share of the business, overall profitability is expected to improve meaningfully, given that AI Cloud contracts carry higher margins than the existing Bitcoin mining operations. Accelerating hyperscaler demand for dedicated GPU capacity, driven by the global AI infrastructure buildout, makes a compelling case for IREN. Based on Q2 FY26, IREN reported total revenue of $184.7 million, up 59% versus the same quarter last year, with AI Cloud revenue more than doubling sequentially to $17 million as GPU deployments ramped up.
Terawulf Inc
TeraWulf is expected to capture a growing share of hyperscaler demand for energy-advantaged AI and HPC data center capacity and is positioned for a dramatic earnings inflection as it transitions from Bitcoin mining to long-term HPC leasing. This is driven by a portfolio of zero-carbon, grid-advantaged campuses alongside a multi-regional 2.9 GW development pipeline with targeted annual delivery of 250–500 critical IT MW through the end of the decade. HPC lease revenue could represent the primary earnings driver by 2026, with EBITDA growing at a roughly 505% compound rate from 2025 to 2027 as contracted megawatts come online. TeraWulf's capital-intensive buildout, including a $500 million Kentucky data center financing, will keep near-term earnings negative through early 2026, though long-term lease structures with annual escalators provide durable cash flow visibility. Heightened demand from Google and AWS for low-cost, zero-carbon compute can drive contracted capacity signings above the current 522 MW pipeline. US federal and enterprise prioritization of AI infrastructure coupled with growing demand for sustainable computing could further benefit TeraWulf's energy-advantaged positioning.
Cipher Digital Inc
Cipher's rebrand to Cipher Digital signals a definitive pivot from bitcoin mining to HPC/AI colocation, positioning the company to capture long-term leases with hyperscale customers at a time when capacity is scarce and demand is high. The company is on the cusp of multiple near-term catalysts: a 100 MW HPC deal at Stingray (energized Q4 2026) could generate ~$140M in annual revenue and ~$120M in NOI by itself. Beyond Stingray, negotiations at the 200 MW Ulysses site (Q4 2027) are advancing well, while two marquee construction projects such as Barber Lake (300 MW gross, Fluidstack) and Black Pearl (300 MW gross, AWS) remain fully funded and on track, with leases beginning Q4 2026. With secured power, fully-funded construction, and imminent deal signings with best-in-class hyperscale customers, Cipher Digital is positioned to scale from a bitcoin miner into a multi-gigawatt HPC operator.
Cleanspark Inc
CleanSpark, Inc. is a bitcoin mining technology company, which engages in the management of data centers. CleanSpark's "second mover" position in HPC colocation gives it a structural cost-of-capital advantage: management can learn from pioneer mistakes, negotiate better lease terms (which are improving across the space), and access credit markets more easily as lenders gain comfort with crypto-miner-to-AI pivots. Uniquely, CLSK's hybrid operating model—mining bitcoin at a site until GPU colocation tenants' infrastructure is energized, then redeploying ASICs to other power-available nodes—maximizes the economic return on every dollar of capex by generating dual revenue streams during transition periods.
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