Report 05 Nov 2025

Expert View: Vodafone’s Skaylink Acquisition Highlights Telco GPUaaS Opportunity

PAC forecasts public IaaS/PaaS to grow by 18.5% between 2025 and 2029, as telecommunications providers worldwide look beyond traditional connectivity to position themselves as the backbone of AI infrastructure. While the telco GPUaaS market remains in its early stages, there is growing momentum behind the buildout of AI factories and the modernization of existing data centers to handle the surge in AI workloads. Unlike traditional IT environments, AI workloads require purpose-built, high-performance GPU infrastructure optimized for massive parallel processing. This shift demands data centers engineered for higher power density, advanced cooling systems, and seamless scalability, supported by specialized operational and business models that go far beyond conventional IT frameworks.