AKAM · 10-Q · 2026Q2 · Full report

Cloud Infrastructure Supply Costs

AKAMAI TECHNOLOGIES INC · 2026-08-07 · Importance 52 · Surprise 42 · No source text

Akamai is expanding its network and platform capacity to support cloud infrastructure services and AI applications, including through compute partner programs. Competition for data center space from hyperscalers has increased co-location costs, and the company is entering longer-term leases that may create costs before locations are fully utilized. Hyperscaler-driven market dynamics are also increasing co-location, server and memory prices, raising capacity expansion and infrastructure deployment costs.

Key facts

• Company expects network build-out and supporting services to increase due to compute partner programs during remainder of 2026 source
• Six months ended June 30, 2026 Co-location costs: $198,364 (in thousands) source
• Six months ended June 30, 2025 Co-location costs: $170,950 (in thousands) source
• Company expects cost of revenue to increase during remainder of 2026, in particular co-location costs, bandwidth fees, depreciation of network equipment and amortization of internal-use software source
• Company states they are experiencing significant increases in server and memory costs due to market dynamics driven by hyperscalers which will increase future capital expenditures and depreciation expense source
• Six months ended June 30, 2026 Network build-out and supporting services: $141,798 (in thousands) source
• Six months ended June 30, 2025 Network build-out and supporting services: $112,297 (in thousands) source
• Three months ended June 30, 2026 Co-location costs: $99,494 (in thousands) source

Impact estimates