Cloud Computing in Business Market Update 2026

Boost Run Secures $525.6M GPU Cloud Contract with Cohere Amid Enterprise AI Surge 

NEW YORK, United States October 8, 2026 AI cloud provider Boost Run has secured a $525.6 million dedicated GPU cloud computing infrastructure contract with Canadian AI startup Cohere, signaling a decisive shift in enterprise procurement toward long-term, specialized AI compute capacity. The development reinforces accelerating investment momentum within the cloud computing in business market, valued at USD 1.18 trillion in 2026 and projected to reach USD 6.85 trillion by 2035, expanding at a 21.4% CAGR. 

Under the terms of the agreement, Cohere will lease access to Boost Run's dedicated GPU cloud computing infrastructure and related services, with the term for each rack set to run for approximately five years. A portion of the contract value is prepayable, and Cohere is expected to begin accepting the infrastructure in the second quarter of 2027. 

Boost Run, founded in 2024, owns and operates bare-metal GPU servers within top-tier data centers used to run AI and high-performance computing workloads. The company currently operates across eight US locations, including Seattle, Durham, Dallas, Richardson, Rock Island, Charlotte, Minneapolis, and Marietta. In the second quarter of 2026, Boost Run reported revenues of $31.14 million, up from $8.42 million in the prior-year period, while total colocation lease costs reached $10.56 million a year-on-year increase of 576 percent reflecting the pace of its infrastructure scaling. 

The agreement reinforces a broader industry pattern in which AI-native enterprises are securing long-term, dedicated cloud infrastructure capacity to support large language model training and inference workloads. Cohere, which previously signed a $220 million cloud agreement with Buzz HPC for capacity at its Merritt, British Columbia, data center, continues to expand its GPU infrastructure partnerships as enterprise demand for generative AI services intensifies. 

Key Highlights: 

• $525.6 million contract: Cohere will lease dedicated GPU cloud computing infrastructure from Boost Run, with each rack term running approximately five years, underscoring the long-horizon nature of enterprise AI infrastructure commitments. 

• Conditional delivery clause: If Boost Run fails to provide a minimum amount of infrastructure by July 15, 2027, Cohere retains the right to terminate the agreement and receive a full refund of all prepaid amounts. 

• Rapid infrastructure scaling: Boost Run's Q2 2026 colocation lease costs surged 576% year-on-year to $10.56 million, reflecting the company's aggressive US data center footprint expansion from four to eight locations. 

• Cohere's multi-vendor GPU strategy: The Canadian AI startup continues to diversify its compute supply chain, having previously committed to AMD Instinct GPU usage and secured a separate $220 million cloud deal with Buzz HPC. 

Analyst Insight: 

According to analysts at Next Move Strategy Consulting, rising enterprise AI workload deployment across cloud platforms is the primary structural driver of the cloud computing in business market, contributing an estimated 5.1 percentage points to the sector's 21.4% CAGR through 2035. NMSC analysts note that long-term GPU infrastructure contracts of the scale secured by Boost Run reflect a broader enterprise shift toward dedicated, bare-metal AI compute capacity, as organizations seek to reduce latency and cost variability associated with shared public cloud environments. This procurement pattern is expected to accelerate as Platform as a Service adoption expands at a 24.1% CAGR, reinforcing demand for specialized AI-integrated infrastructure through the forecast period. 

Industry Outlook: 

The Boost Run–Cohere agreement exemplifies the structural transformation underway across the cloud computing in business market, where enterprise AI workload growth is driving long-term infrastructure commitments at unprecedented scale. With the global market projected to expand from USD 1.18 trillion in 2026 to USD 6.85 trillion by 2035, the competitive landscape is increasingly defined by providers' ability to deliver dedicated, scalable GPU compute capacity aligned with enterprise AI deployment timelines. 

Data residency requirements and capital expenditure sustainability remain key risk factors for stakeholders. Meanwhile, Asia-Pacific's 25.6% CAGR and the Small and Medium Enterprise segment's 24.9% CAGR represent the most significant near-term growth opportunities for cloud infrastructure providers seeking to capture above-market returns through 2035. 

Source: Data Center Dynamics 

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Prepared By: Sanyukta Deb