Data Centres, Compute & Cloud

Data centres, compute and cloud comprises the physical and virtual facilities that store, process and distribute data, including colocation and hyperscale data centres, cloud regions and edge nodes, high-performance computing centres, AI training clusters, and national cybersecurity facilities such as CERTs, security operations centres and cyber ranges.
Hard Power / Strategic Infrastructure / Communications & Digital Infrastructure

Data centres, compute and cloud comprises the physical and virtual facilities that store, process and distribute data, including colocation and hyperscale data centres, cloud regions and edge nodes, high-performance computing centres, AI training clusters, and national cybersecurity facilities such as CERTs, security operations centres and cyber ranges.

Indicators

  • Data centre capacity in operation
  • Installed high-performance compute capacity
  • Domestically hosted cloud region availability
Capability Developments

Major milestones and key developments of the capability

The Capability Development Index tracks the events that move a capability — operational use, technical breakthroughs, procurement decisions and the industrial base behind them — and places each on the record with the date it happened.

Recent developments cover the current period. Historical developments are the inflection points that produced Data Centres, Compute & Cloud as it stands today.

GovernanceSecurityTechnologyEconomy

Historical Developments

1945ENIAC began operation as the first general-purpose electronic computer 81 years ago

Built to calculate artillery firing tables, it occupied a large room and needed a team to reprogram by rewiring, but it established that electronic computation at scale was possible, the starting point from which later compute infrastructure descended.

1961MIT's Compatible Time-Sharing System let multiple users access a single computer remotely for the first time 65 years ago

Time-sharing replaced the practice of feeding a computer one job at a time, showing that computing power could be divided among many simultaneous users, the conceptual root of remote, on-demand computing services.

1972IBM's VM operating systems introduced virtual machines, letting one computer serve many users as if each had a dedicated machine 54 years ago

Virtualisation let a single mainframe be divided into many isolated environments, a concept that lay dormant for decades before becoming the technical foundation that made multi-tenant cloud computing commercially practical.

1976The Cray-1 defined the supercomputer as a distinct category of machine built solely for large-scale computation 50 years ago

Seymour Cray's design, notable for its speed and distinctive circular shape, established a lineage of dedicated high-performance machines built for scientific and, later, weather and weapons simulation that modern AI training clusters descend from.

1994General Magic coined the 'cloud' metaphor for virtualised services 32 years ago

General Magic used the cloud metaphor for the universe of 'places' that mobile agents in its Telescript environment could go. The usage is credited to communications specialist David Hoffman, drawing on long-standing networking and telecom convention.

1996Compaq Computer Corporation drew up a business plan around cloud computing-enabled applications 30 years ago

Compaq's plan for future computing and the Internet popularised the expression 'cloud computing'. It foresaw commercial success for online consumer file storage, prompting Compaq to sell server hardware to internet service providers.

1999Salesforce pioneered delivering enterprise software as an on-demand internet service 27 years ago

Its subscription model, run from the provider's own servers rather than installed on a customer's machines, established the software-as-a-service pattern that later became a standard way of delivering cloud-hosted applications and compute.

2002Japan's Earth Simulator became the world's fastest supercomputer 24 years ago

Built to model climate and seismic activity, it held the top ranking for over two years, the last time a non-American machine led global supercomputing until Chinese systems took the lead more than a decade later.

2002Amazon established Amazon Web Services 24 years ago

AWS was set up to allow developers to build applications independently, marking the practical emergence of cloud computing in the 2000s. It became the foundation of the commercial public cloud market.

2004Google engineers published the MapReduce and Google File System papers 22 years ago

The papers described how to split enormous computing jobs across thousands of ordinary machines, an architecture that the wider industry, including the open-source Hadoop project, copied and that underpins hyperscale cloud computing to this day.

2006Amazon launched EC2 and S3, founding public cloud computing as a mass-market utility 20 years ago

Renting server capacity and storage by the hour let startups and later large enterprises avoid buying their own data centres, a shift in the economics of computing that Microsoft, Google and, later, Chinese providers all followed.

2008NASA developed the first open-source software for private and hybrid clouds 18 years ago

NASA produced the first open-source stack for deploying private and hybrid cloud environments. This opened cloud deployment beyond proprietary public providers.

2010Microsoft launched Microsoft Azure 16 years ago

Azure gave Microsoft a full public cloud platform, establishing a major competitor to AWS. Its launch was part of a wave of cloud service introductions in the 2010s.

2010Rackspace Hosting and NASA initiated the OpenStack open-source cloud project 16 years ago

OpenStack provided a shared open-source software base for building private and public clouds. It gave organisations and states an alternative to proprietary hyperscaler platforms.

2011National Institute of Standards and Technology defined five essential characteristics and three cloud service models 15 years ago

NIST identified five essential characteristics of cloud systems and recognised IaaS, PaaS and SaaS as the core service models. This became the reference framework for procurement and regulation of cloud services.

2011IBM introduced the IBM SmartCloud framework 15 years ago

IBM entered the cloud market with its SmartCloud framework. It was part of the broad shift of incumbent IT vendors into cloud provision.

2012Oracle announced Oracle Cloud 14 years ago

Oracle announced its own cloud platform, extending the competitive field of major providers. It continued the migration of established enterprise software vendors into hosted infrastructure.

Recent Developments

May 2025The United States and the United Arab Emirates struck a deal allowing large-scale advanced chip exports to G42 last year

The agreement, reached during a presidential visit to the Gulf, cleared the way for the Emirati firm G42 to import substantial volumes of advanced Nvidia processors for AI data centres, part of a wider set of Gulf compute agreements including Saudi Arabia.

Saudi Arabia signed a parallel package with Nvidia and AMD
2025Malaysia continued to draw hyperscale cloud investment into Johor last year

Microsoft, Google and regional cloud providers expanded data centre and compute capacity in Johor, building on earlier commitments and positioning Malaysia as a lower-cost alternative to Singapore for cloud and AI workloads serving Southeast Asia.

2025Huawei scaled its Ascend AI chips into large domestic compute clusters despite US export controls last year

Chinese cloud providers deployed clusters built on thousands of Ascend processors to train and serve large models domestically, narrowing though not closing the gap with clusters built on restricted Nvidia hardware, and reducing reliance on smuggled or grey-market chips.

2025South Korea's government committed public funding to a national AI computing centre last year

The project, developed with domestic technology groups, aimed to give Korean researchers and companies access to large-scale GPU capacity at home, echoing sovereign compute programmes announced by Japan, India and Gulf states over roughly the same period.

2025Japan's government subsidised domestic GPU cluster build-out for sovereign AI compute last year

The trade ministry extended grants to domestic cloud providers including Sakura Internet to expand graphics processor capacity inside Japan, part of an economic security strategy intended to reduce dependence on foreign hyperscalers for AI training and inference.

2024Cassava Technologies began building Africa's first large Nvidia GPU cluster 2 years ago

The pan-African group, working with Nvidia, opened AI compute capacity intended to let African researchers and businesses train and run models locally rather than renting capacity from cloud providers based in the United States, Europe or the Gulf.

Late 2024The US Commerce Department tightened export controls on chipmaking equipment and high-bandwidth memory bound for China 2 years ago

Additional Chinese fabrication plants and toolmakers were added to restricted lists, extending earlier controls on advanced processors to the equipment and specialised memory needed to manufacture them, an escalation contested by allied toolmakers in Japan and the Netherlands.

2024–2025Smuggling networks routed restricted AI processors to China through third countries last year

Investigations and export-control enforcement actions traced shipments of restricted Nvidia processors reaching China via Singapore, Malaysia and other transit points, prompting tighter reporting requirements for regional buyers even though most local demand was genuine.

Nvidia tightened its own reseller checks
2024–2025China's state-backed Big Fund directed a new investment round toward domestic chipmaking and compute capacity last year

The fund, one of several vehicles channelling state capital into semiconductors, backed equipment makers and chip designers as Beijing sought compute capacity that did not depend on foreign suppliers subject to export licensing.

2024–2025India's IndiaAI Mission empanelled private data centres to offer subsidised GPU access to domestic developers last year

Firms including Yotta and E2E Networks were selected to supply graphics processors at government-negotiated rates, building a shared national compute pool intended to give startups and researchers access that they individually could not afford.

The pool grew toward tens of thousands of GPUs
2023International Organization for Standardization expanded cloud definitions in ISO/IEC 22123-2:2023 3 years ago

ISO refined the list of essential cloud characteristics and added service categories including Network, Communications, Compute and Data Storage as a Service. The standard also classified serverless computing alongside IaaS, PaaS and SaaS.

2022The United States passed the CHIPS and Science Act 4 years ago

The law committed tens of billions of dollars in subsidies and tax credits to rebuild domestic semiconductor manufacturing and research capacity, reflecting a bipartisan judgement that compute capacity was a strategic asset rather than an ordinary traded good.

The European Union and Japan passed their own chip acts around the same time
December 2019Amazon launched AWS Outposts 7 years ago

Outposts extended AWS infrastructure, services, APIs and tools into customer data centres, co-location spaces and on-premises facilities. It marked the hybrid convergence of public cloud and private infrastructure.

2016China's Sunway TaihuLight became the world's fastest supercomputer while built entirely on domestic processors 10 years ago

The machine topped the global TOP500 ranking using Chinese-designed chips rather than American processors, demonstrating that indigenous high-performance computing was achievable and foreshadowing the compute self-sufficiency drive that followed later export controls.

October 2014Dropbox suffered a breach with seven million passwords stolen 12 years ago

Hackers stole over seven million Dropbox user passwords, seeking payment in Bitcoin. Together with the 2014 iCloud leak, it highlighted the security exposure inherent in consumer cloud storage.

2012European Commission identified obstacles impeding the cloud computing market 14 years ago

A Commission Communication set out several issues holding back development of the European cloud market. It marked early supranational policy attention to cloud capability.

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