AKAM · 10-Q · 2026Q3 · Full report

Cloud Infrastructure Supply Costs

AKAMAI TECHNOLOGIES INC · 2026-11-06 · Importance 76 · Surprise 56

Akamai’s expansion of cloud infrastructure services and its platform for AI applications is increasing demand for data-center space, network capacity and compute partners. Third-quarter co-location costs increased to $108.5 million from $86.8 million, and network build-out and supporting services rose to $86.4 million from $59.5 million, including costs to expand the compute partner program. The company said competition for data-center space, including from hyperscalers, and market-driven price increases for co-location, servers and memory are raising its costs. Akamai has entered into longer-term leases with financial commitments and said some costs are incurred before locations are fully utilized.

Key facts

• Akamai's network build-out and supporting services costs were $86.412 million for the three months ended September 30, 2026, compared with $59.524 million in 2025, and $228.210 million for the nine months, compared with $171.821 million in 2025. source
• Akamai's co-location costs were $108.501 million for the three months ended September 30, 2026, compared with $86.763 million in 2025, and $306.865 million for the nine months, compared with $257.713 million in 2025. source
• Akamai expects cost of revenue to increase during the remainder of 2026 compared with 2025, particularly co-location costs, bandwidth fees, network equipment depreciation and internal-use software amortization, as it invests in its platform for cloud infrastructure services. source
• Akamai is experiencing hyperscaler-driven price increases for co-location, server and memory costs, which it expects to increase co-location costs and network equipment depreciation. source
• Akamai expects network build-out and supporting services costs to increase because of compute partner programs supporting cloud infrastructure services growth, and stock-based compensation to increase because a new benefit reduced the service period for retirement-eligible employees. source
• Akamai's co-location costs have increased significantly and are expected to continue increasing as it scales cloud infrastructure services, including its AI-supporting platform and multi-year arrangements. source