As generative AI rapidly spreads and the demand for GPU-intensive computing surges, NeoCloud, a cloud provider specializing in AI and high-performance workloads, is entering the existing hyperscaler-centric market.

Gartner announced on the 24th that it forecasts neocloud providers will account for 20% of the $267 billion (approximately 410 trillion won) AI cloud market by 2030.

Gartner explained that as investment in high-performance infrastructure expands and existing cloud models fail to keep up with the demand for GPU-intensive workloads, an environment is being created for the growth of new types of vendors.

Enrique Castera, a senior analyst at Gartner, said, “Neocloud providers are emerging as U.S. hyperscalers launch their own sovereign services,” adding, “Neocloud focuses on AI-optimized infrastructure and high-performance workloads.”

He added that some NeoClouds are focusing on sovereign cloud capabilities that keep data and operations within specific jurisdictions.

According to Gartner, Sovereign NeoCloud ensures that part or all of the cloud environment—including data, operations, and governance—remains within the borders, protecting it from foreign legal claims or extraterritorial access.

Gartner reported that as data sovereignty requirements become stricter, companies are being required to have control over the storage, processing, and management locations of AI data.

These requirements are based on the transparency obligations of the General Data Protection Regulation (GDPR) and the EU AI Act, which is set to take effect in August 2026.

Gartner recommended that IT leaders, including those in Infrastructure and Operations (I&O), evaluate specialized NeoCloud providers to secure high-performance AI infrastructure and limited GPU capacity, and pursue a diversification strategy that is not limited to existing hyperscalers.

It was also stated that technical controls must be introduced to ensure data sovereignty, regulatory compliance, and operational resilience, and financial and risk management strategies must be adjusted.

Castella, an analyst, stated, “Companies can leverage NeoCloud providers to enhance their AI capabilities while simultaneously securing control over data sovereignty and regulatory compliance.”