WTF Friday (aka Jargon Alert): Hyperscalers

By Patrick Diamond, CFP®

What is a Hyperscaler? A hyperscaler is a company that operates massive-scale data centers and provides cloud computing services, characterized by their vast infrastructure and ability to rapidly scale resources up or down to meet user demand for both cloud services and artificial intelligence computing. The “big three” hyperscalers are Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP), which dominate the global cloud market.

Spending on data centers (microchips, building equipment, computers, etc.), accounted for 92 percent of the country’s gross domestic product growth in the first half of the year, according to Harvard research as reported in the NY Times recently. This massive build out is also contributing to a large increase in demand for energy to power these new data centers.

The big three reported 3rd Quarter earnings this week, and from all indications spending on the build out of data centers will continue through 2025 and into 2026.

*Disclaimer: All information in this blog post and blog is for educational and informational purposes only and does not constitute investment, legal, or tax advice.

YTD Performance as of 10/30/25