What is a Neocloud?

What Makes Neoclouds Different

Neoclouds are a new breed of cloud provider, built from the ground up to support artificial intelligence (AI) and high-performance computing (HPC). Unlike household names like Amazon Web Services, Microsoft Azure, or Google Cloud (often referred to as hyperscalers), Neoclouds are purpose-built to do one thing exceptionally well: deliver raw, scalable computing power especially using graphics processing units (GPUs) for the most demanding workloads.

GPUs were originally developed for graphic rendering, the process of generating visuals from digital data, such as 3D models or animations. Their strength lies in handling thousands of calculations at once, which is why they’ve become essential for running AI models, powering generative AI, and enabling ultra-high-performance computing at scale.

Here’s what sets them apart:

• Focused: They specialise in just one thing, providing access to extremely powerful computing (mainly GPUs).
• Flexible: They let organisations rent that power when they need it, no heavy infrastructure required.
• Fast-moving: They’re often leaner and more agile than the big clouds, moving quickly to adopt the latest tech.

In short: if the big clouds are general-purpose supermarkets, Neoclouds are highly specialised delicatessens, serving exactly what AI-driven businesses need most, performance, flexibility, and speed.

Explore This Guide to Neoclouds

To understand why Neoclouds are gaining serious traction, it’s worth exploring what makes them different, why they’ve emerged now, and how they’re transforming AI-driven businesses.

Whether you're here to grasp the basics or fast-forward to real-world use cases, use the links below to anchor directly to the sections most relevant to you:

• Purpose-Built for AI: The Neocloud Difference

• Are Neoclouds Emerging Now?

• So, What Do Neoclouds Actually Offer?

• What Kinds of Companies Use Neoclouds?

• Real-World Examples: Neoclouds in Action

• Will Neoclouds Replace the Big Clouds?

• Line for Business Leaders

• Rethinking Your AI Infrastructure?

Purpose-Built for AI: The Neocloud Difference

The key difference comes down to focus.

While hyperscalers offer thousands of cloud services for almost every IT function imaginable, Neoclouds strip it all back and deliver one core thing really well: GPU computing for AI.

They don’t build their own chips. They don’t try to replace your full IT stack. Instead, they rent you access to incredibly powerful GPUs, ready to train and run AI models at scale.

Some names leading the Neocloud wave include CoreWeave, Lambda Labs, Crusoe, and Nebius. These aren’t just promising startups, they’ve scaled rapidly by solving one of today’s most pressing challenges for organisations: on-demand access to AI infrastructure.

How are the developments in AI driving increased needs for Neocloud?

It all comes down to one thing: AI is going mainstream, fast.

From ChatGPT to self-driving cars, businesses are now building products and services where AI is at the core, not just an add-on. These are what we call AI-first workloads. And they need huge amounts of computing power to work properly.

Training a large AI model can take weeks on standard infrastructure, but with the right GPUs and configuration, it could take days or hours.

And it’s not just training. Even running those models in real time, like having a chatbot answer customers instantly or scanning millions of images, requires specialised infrastructure that’s fast, powerful, and scalable.

That’s where Neoclouds come in. They provide this “AI horsepower”on demand, without the waitlists or complexity that sometimes come with hyperscalers.

So, What Do Neoclouds Actually Offer?

Let’s keep it simple. Neoclouds deliver:

• Power: Access to top-tier GPUs (the same chips used in AI supercomputers).
• Speed: No delays or queues to get started.
• Cost efficiency: Often cheaper than using hyperscalers for AI tasks¹.
• Flexibility: Pay for what you need, when you need it.
• Expert support: Teams that actually understand AI workloads.

In many cases, switching from a hyperscaler to a Neocloud can cut GPU costs by over 60%, especially for organisations training AI models or running them continuously¹.

And because many Neoclouds work with data centres like NEXTDC, customers can also choose where their workloads run, closer to users, reducing latency and improving performance.

What Kinds of Companies Use Neoclouds?

Neoclouds are used by:

• AI startups building chatbots, search engines or recommendation systems
• Research labs training large-scale machine learning models
• Media companies doing real-time rendering or video processing
• Enterprise teams working on custom AI tools that need GPU muscle

One Australian example is SharonAI, a Neocloud Operator that launched a GPU cloud service built entirely on infrastructure provided by NEXTDC, helping them enter the market fast, without needing to build their own data centre.

In fact, NEXTDC is helping power the Neocloud movement by providing the high-density, AI-ready infrastructure these providers need.

Real-World Examples: Neoclouds in Action

Here are three leading Neocloud providers and what they’re enabling organisations to do better, from scaling infrastructure to accelerating AI development:

1. CoreWeave

What they do: A US-based Neocloud that specialises in delivering GPU compute for AI, VFX (visual effects), and machine learning.
Who they serve: AI startups, animation studios, financial services firms.
What they’re solving: Companies working with large AI models or real-time rendering need high-performance GPUs without owning the infrastructure. CoreWeave gives them instant access to thousands of GPUs, helping them scale workloads without delay.

2. Lambda

What they do: A Neocloud provider offering GPU cloud, servers, and workstations, purpose-built for deep learning.
Who they serve: AI researchers, data science teams, enterprise R&D groups.
What they’re solving: Lambda solves the challenge of accessing affordable, high-performance GPU infrastructure, giving organisations the power to train large AI models and run compute-heavy workloads without managing their own hardware.

3. Crusoe Cloud

What they do: A Neocloud provider that uses flare gas (a byproduct of energy production) to power AI cloud data centres blending sustainability with compute.
Who they serve: Climate-conscious enterprises, sustainability-focused AI firms.
What they’re solving: Organisations want to reduce the environmental footprint of their AI projects. Crusoe provides low-carbon GPU compute, helping companies align AI infrastructure with their ESG goals.

Will Neoclouds Replace the Big Clouds?

Not quite — and that’s not their goal.

Think of Neoclouds as specialist partners, not replacements.

They complement the big clouds by filling a gap: ultra-high-performance computing for AI. As AI becomes more central to organisational success, many organisations are building hybrid models, using hyperscalers for general workloads, and Neoclouds for AI-specific needs.

Even the hyperscalers themselves are investing in or partnering with Neoclouds to keep up with demand².

So, if you're building AI into your organisation, or thinking about it, you now have more options than ever to do it efficiently and affordably.

The Bottom Line for IT Leaders

• Neoclouds are cloud providers built specifically for AI and high-performance computing.
• They give organisations fast, flexible access to powerful GPUs without building infrastructure from scratch.
• They’re emerging because AI is reshaping how companies compete, and traditional clouds aren’t always fast or affordable enough.
• The right Neocloud partner can accelerate your AI projects, cut costs, and improve performance.
• Backed by providers like NEXTDC, Neoclouds are already launching real services in the Australian market.

Rethinking Your AI Infrastructure?

Whether you’re building AI products or delivering AI-powered services, your infrastructure is critical to success.

NEXTDC partners with leading Neocloud and GPU cloud providers to deliver high-density, low-latency, AI-optimised environments, purpose-built to scale with your ambitions. From first deployment to full-scale production, we’re with you every step of the way.

  Talk to our team about what your AI infrastructure needs to succeed.

Explore More Articles

• SharonAI Case Study: How a Neocloud Provider Launched at Scale with NEXTDC

• Neoclouds vs Hyperscalers: The Rise of AI-First Infrastructure

• Australia: The Strategic Launchpad for Hyperscale and Neocloud Expansion

Sources

1. Uptime Institute - Neoclouds: a cost-effective AI infrastructure alternative
2. Data Centre Frontier - Deep Data Center: Neoclouds as the ‘Picks and Shovels’ of the AI Gold Rush