Loading market event…
Loading market event…
Worth notingMarket eventFri, Oct 231 min read
The search could bring substantial cloud and data-center revenue, but who captures the additional business remains uncertain.
TikTok's U.S. entity is looking to secure multiple gigawatts of computing capacity, CNBC reported, citing sources. A gigawatt is a unit of electrical power; in data centers, it describes the scale of power supporting the servers.[1]
A TikTok U.S. spokesperson said the company runs primarily on Oracle Cloud Infrastructure in the United States and that Oracle will remain its primary cloud infrastructure provider. The reported development is a search for capacity.[1]
If TikTok turns the search into contracts, the cloud providers serving it could earn more revenue from computing and storage services. Providers without enough available capacity may first need to spend on data centers, equipment and power access, so the revenue opportunity can also bring upfront costs.[1]
Oracle's existing role gives it an established customer relationship, but that role does not settle how additional business will be allocated. The eventual revenue depends on the commitments signed, when capacity becomes available and how much TikTok uses.[1]
Oracle and other providers able to meet the demand have a potential opportunity to compete for substantial customer spending. Available capacity makes it easier to serve that demand; providers needing to expand face upfront investment. TikTok says Oracle remains its primary provider, leaving the additional opportunity for rivals uncertain.[1]