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In 2025, the startup landscape is more competitive than ever. Founders are racing to deploy AI-powered tools, launch immersive gaming experiences, process real-time analytics, and build resilient platforms that can handle millions of users globally. But underneath all this innovation lies a foundational decision that can make or break their scaling strategy: infrastructure.Public cloud platforms have long been the default option, offering speed and scalability. Yet, a growing number of startups are reevaluating that choice. With performance, cost control, and data governance at the forefront of today’s needs, bare metal servers—dedicated physical machines without virtualization—are gaining favor.This blog explores the rise of bare metal in the startup ecosystem, its advantages, use cases, and why it's positioned as a cornerstone of modern, high-growth infrastructure strategy.What Is Bare Metal?Bare metal refers to physical servers dedicated entirely to a single user or application, without a hypervisor or virtualization layer. It’s the opposite of shared, virtualized environments found in public cloud ecosystems.Key Characteristics of Bare Metal Servers:Direct Access to Hardware:Full control over CPU, RAM, GPU, NVMe storage, and networking resources.Zero Hypervisor Overhead:No performance tax from virtualization layers.Predictable Performance:Elimination of “noisy neighbor” issues common in shared environments.Transparent Billing:Flat-rate or usage-based billing without hidden costs.Modern bare metal solutions offer much more than just raw hardware. They’ve evolved to include:REST APIs and CLI tools for infrastructure automation.Integrations with Terraform, Ansible, Kubernetes, and CI/CD platforms.Data center presence in major cloud regions globally.On-demand provisioning with hourly or monthly billing.Why Startups Are Choosing Bare Metal in 20251.Performance for AI, ML, Gaming, and Emerging TechThe rise of AI and GPU-intensive workloads has reshaped infrastructure requirements. Startups in AI, gaming, crypto, AR/VR, and video streaming need uncompromised performance and low-latency access to powerful GPUs and fast storage.Bare Metal Advantages:Full-Stack GPU Access:No virtualization penalty when training LLMs or running inferencing pipelines.High-Speed Storage:NVMe SSDs deliver massive IOPS for AI model checkpointing and video encoding.Optimized Networking:Some providers offer direct RDMA or 25–100 Gbps NICs for high-throughput clusters.Startups like generative AI builders or game server hosts are finding that bare metal enables them to deliver smoother user experiences and faster time-to-insight—especially when milliseconds count.2.Cost Control and Predictable BillingCloud bills are notoriously difficult to predict. Network egress, API calls, storage operations, and auto-scaling quirks can turn a small MVP deployment into a $30,000/month surprise.Bare Metal Cost Benefits:Flat Monthly or Hourly Pricing:Clear pricing with no surprises.No Charges for IOPS or Network Egress:Unlike cloud, you aren’t charged per disk operation or gigabyte transferred.Lower TCO for Steady Workloads:For always-on compute needs, bare metal can be 50–70% cheaper over 12–24 months compared to AWS, Azure, or Google Cloud.In a capital-conscious world, VCs are urging startups to control infrastructure spending early. Bare metal’s predictability gives CFOs and CTOs clarity and confidence.3.Transparency and Regulatory ComplianceStartups operating in regulated industries—fintech, medtech, legal tech, and government—face strict rules around data storage, auditability, and system access.Bare Metal Helps with:Data Residency Assurance:Your data sits on a physical server in a known location, not across dynamic multi-tenant clouds.Audit-Ready Isolation:SOC 2, HIPAA, and GDPR compliance is easier when environments are isolated and controlled.Custom Security Posture:Full OS and firmware control lets you implement custom encryption, firewalls, and intrusion detection.For startups applying for government contracts or entering the financial services sector, bare metal offers peace of mind and simpler compliance paths.4.Startup Velocity with DevOps CompatibilityLegacy bare metal conjures images of racking servers and submitting tickets. But in 2025, that perception is outdated.Modern Bare Metal Offers:Infrastructure-as-Code Integrations:Deploy with Terraform or Ansible.Cloud-Native Tooling:Use Prometheus, Grafana, Kubernetes, and GitHub Actions natively.Self-Service Portals:Provision a server in 10–15 minutes with a cloud-like UI.Bare metal no longer means slow or rigid. Today’s platforms support fast iteration, high availability, and even multi-cloud connectivity.Ideal Bare Metal Use Cases for StartupsReplacing the original chart with a detailed breakdown, here’s where bare metal shines for early-stage companies:AI/ML TrainingStartups training generative models, recommendation engines, or computer vision systems benefit from:Dedicated NVIDIA A100/H100 GPUs.No interference from other workloads.Faster convergence and lower model training costs.Gaming ServersFor multiplayer or real-time games, performance is everything:Consistent low-latency experiences for players.High bandwidth for asset delivery.Location-specific deployment (e.g., NA, EU, APAC regions).Blockchain and Crypto NodesBare metal ensures:Consistent block validation and transaction throughput.High disk IOPS and secure key management.Reduced risk of fork issues due to VM latency.Video Streaming and EncodingStartups delivering live content or transcoding videos at scale gain:Custom CDN builds with edge-optimized configs.Dedicated storage pipelines for high-volume throughput.Better bitrate control and QoS.Dev/Test EnvironmentsPredictability matters when benchmarking:Consistent machine specs for reproducible test results.Dedicated environments for load testing and QA.Reduced flakiness compared to spot instances or shared cloud labs.Top Bare Metal Providers Startups Are Using in 2025In 2025, startups are choosing performance-optimized, agile bare metal providers that offer global reach, transparent billing, and deep hardware control—key factors in scaling high-growth tech products.1. ZenlayerZenlayer specializes in edge cloud and bare metal services across emerging and high-growth markets. Startups building real-time, latency-sensitive apps in Asia-Pacific, LATAM, or Africa benefit from:Bare metal access in 180+ edge locations worldwideHigh-throughput networking ideal for AI, gaming, and streamingFlexible, on-demand deployment with robust APIs2. HivelocityHivelocity provides automated bare metal across 40+ global locations with strong DevOps compatibility. It’s an excellent option for startups looking for reliable performance, CI/CD integration, and multi-region availability. Features include:Full REST API and Terraform compatibilityGPU-powered instances for ML and rendering workloadsNear-instant provisioning with consistent hardware specs3. EnzuEnzu delivers dedicated infrastructure through its TruCloud® platform, optimized for startups that need predictable pricing, regulatory compliance, and fast scaling. Key offerings include:Flat-rate bare metal billing modelsCustom configurations for fintech, SaaS, and analyticsBuilt-in support for HIPAA, PCI-DSS, and SOC 2 requirements4. EvocativeEvocative offers enterprise-grade bare metal solutions with an emphasis on security, privacy, and compliance. With data centers across North America, it’s a trusted choice for startups working in finance, healthcare, or government tech. Benefits include:Isolated environments and dedicated hardwareSSAE 18, ISO 27001, and SOC 2 certified facilitiesOptional managed services for lean DevOps teamsMarketplaces Like Datacenters.comFor startups that want to compare and deploy across multiple providers, marketplaces offer huge advantages:Instant Comparisons:Analyze cost vs. performance metrics across vendors.Quick Deployment:Launch in under 15 minutes with minimal DevOps involvement.Multi-Region Scalability:Spin up servers globally for latency optimization.Datacenters.com and similar platforms are streamlining infrastructure acquisition—making enterprise-grade hardware accessible to even seed-stage teams.Risks and ConsiderationsBare metal is powerful but not perfect. Startups should assess these trade-offs carefully:Considerations:Provisioning Time:While faster than ever, it’s still slower than deploying a container or Lambda function.Scaling:Lacks the autoscaling elasticity of serverless or cloud-native workloads.Management Overhead:May require in-house DevOps expertise or a managed services partner.Common Workarounds:Hybrid Architectures:Run core services on bare metal, and use cloud for burst capacity.Automation Tools:Use Ansible/Terraform to ease provisioning and configuration.Monitoring and Alerting:Leverage open-source tools like Grafana, Prometheus, and Netdata.Bare Metal Is Back—And Built for StartupsIn 2025, bare metal isn’t a relic—it’s a revival. For today’s startups, especially those operating in compute-heavy or latency-sensitive sectors, bare metal delivers where the cloud sometimes falls short.💡 Bare Metal Offers Startups:Better Performance Per Dollar:Especially for AI, gaming, and blockchain.Clear Data Control:With easier compliance and audit trails.DevOps-Ready Tooling:Without sacrificing control or visibility.Faster, Smarter Decisions:Enabled by modern marketplaces like Datacenters.com.Bare metal is no longer just for enterprises or traditional hosting—it’s now a vital tool in the startup toolkit. As infrastructure gets more accessible, transparent, and scalable, bare metal is helping founders launch bolder, faster, and more efficiently than ever.

Capital Meets Capacity in the Hyperscale EraIn April 2025, Singapore-based Keppel Corporation unveiled a $580 million private equity fund dedicated to hyperscale data centers. Spearheaded by Keppel Capital, the company’s asset management arm, the fund is purpose-built to meet the surging infrastructure needs of hyperscalers—tech giants like Amazon Web Services (AWS), Google Cloud, Microsoft Azure, Meta, and Apple.This initiative is far more than a funding mechanism. It represents a turning point in how large-scale digital infrastructure is developed, financed, and operated. By aligning its capital with the strategic imperatives of hyperscalers, Keppel is redefining how investment flows into the digital economy.Why Keppel’s Fund Signals a Paradigm ShiftThe scale of hyperscaler demand is unprecedented. These companies aren’t just tenants—they’re co-architects of the internet’s backbone. Keppel’s $580 million fund responds to several emerging dynamics:Exponential AI growthdriving up compute and storage requirementsMulticloud adoptionacross enterprise IT ecosystemsLatency sensitivityin markets previously considered secondaryRegulatory pressuresrequiring data localization and environmental complianceBy focusing specifically on hyperscale-grade infrastructure, the fund fills a critical gap in the market: the need for financially agile, ESG-aligned partners capable of rapid, build-to-suit deployments.Key Features: A Fund Designed for Hyperscaler DNA1. Target Market FocusKeppel’s initiative focuses on hyperscale buildouts in:Asia-Pacific:Jakarta, Manila, Johor, TokyoEurope:Madrid, Milan, Warsaw, BerlinNorth America:Hillsboro, Atlanta, Salt Lake CityThese markets either exhibit explosive demand or are strategically underdeveloped—offering ideal conditions for first-mover investment and rapid growth.2. Capital CompositionThe fund aggregates capital from institutional investors with:Long-duration mandatesInfrastructure investment experienceESG objectives baked into capital allocation strategiesThis institutional backing ensures consistency and scale, allowing Keppel to compete with real estate investment trusts (REITs) and publicly traded data center operators.3. Flexible Development StrategyThe fund supports:Build-to-suit deploymentstailored to hyperscaler workloadsSale-leaseback modelsenabling hyperscalers to monetize owned assetsModular and phased buildsfor just-in-time scalabilityThe Hyperscaler Data Center Boom: By the NumbersAccording to Synergy Research Group, the global count of hyperscale data centers reachedover 900 in Q1 2025—with projections exceeding1,200 by 2027. These data centers are not just larger—they are significantly more advanced in terms of automation, energy modeling, and customization.Typical hyperscale requirements now include:50–100+ MWof scalable powerGPU-optimized cooling systemsfor AI trainingDedicated fiber and dark fiber pathsRack densitiesexceeding 40 kW per cabinetThis puts immense pressure on developers to deliver not just square footage, butengineered performance at hyperscale speeds.Strategic Geographic Positioning: Where Demand Meets Opportunity1. Asia-Pacific: The New Hyperscale FrontierAsia is witnessing explosive growth due to:5G rollouts and mobile-first economiesAI innovation clusters in Jakarta and TokyoData sovereignty regulations driving local hostingJakarta and Johorare standout markets, with government support and submarine cable landings giving them added appeal.2. Europe: Digital Sovereignty Cloud NationalismEU markets are seeing hyperscale expansion driven by:National cloud programsGDPR-compliant infrastructure mandatesRenewable energy transitionsCities likeMadrid and Warsawoffer lower costs and faster permitting, positioning them as alternatives to saturated hubs like Frankfurt and London.3. North America: Selective Edge-Driven ExpansionHyperscalers are increasingly favoring:Secondary markets likeAtlanta and Hillsborofor tax incentivesSalt Lake Cityfor cool climates and cheap renewable powerEdge computing hubs to reduce regional latencyKeppel’s targeting reflects this pivot toward infrastructure diversification.ESG: More Than a Buzzword, a Business ModelEnvironmental, Social, and Governance (ESG) principles are central to the fund’s design. Hyperscalers now treat sustainability as acore procurement criterion, not an optional add-on. Keppel’s fund includes:Carbon-neutral design standardsby 2030Solar integrationand clean energy PPAsRecycled water and evaporative cooling systemsModular designsto reduce material wasteEnergy usage effectiveness (PUE)targets below 1.3This ESG-first approach enhances appeal to both tech tenants and institutional backers seeking climate-aligned portfolios.Competitive Landscape: Keppel vs. Global HeavyweightsKeppel enters a competitive arena occupied by:Digital Realtywith its PlatformDIGITAL™ expansionEquinixpursuing cloud adjacency in tier-2 citiesEdgeConneXoffering edge-native hyperscale solutionsWhat gives Keppel an edge?1. Financing FlexibilityOffers OpEx-friendly models: leasing, co-investment, or managed servicesAppeals to hyperscalers shifting away from CapEx ownershipProvides sovereign wealth and pension fund capital channels2. Construction SpeedTaps into Keppel’s EPC (engineering, procurement, construction) unitsLeverages pre-permitted land banks and regulatory connectionsDelivers hyperscale-ready builds in12–18 months3. Localization StrategyForms joint ventures with utilities and dark fiber providersSecures local workforce and permitting alignmentReduces geopolitical and operational risksImplications for Hyperscalers: Speed, Scale, and SovereigntyHyperscalers are under increasing pressure to:Ensurecompliancewith evolving data privacy regulationsDeliverlow-latency servicesacross emerging regionsDecarbonize operationsin line with net-zero commitmentsKeppel’s fund offers a multi-pronged solution:Speed:Rapid construction timelines and site readinessScale:50+ MW builds with room to growSustainability:ESG compliance across asset lifecycleIn effect, Keppel becomes an infrastructure enabler—not just a developer.Implications for Investors: Digital Real Estate with YieldFor institutional investors, data centers are:High-demand, low-churnassetsBacked by long-term leasesfrom investment-grade tenantsResilient to macroeconomic shocksKeppel’s fund offers:Geographic diversificationHyperscaler-linked demand signalsAsset-backed returns with inflation-hedged growth potentialIt’s an investment that’s bothtech-aligned and income-stable.Implications for the Industry: Capital Becomes Cloud-NativeThe digital infrastructure landscape is evolving. Keppel’s initiative reflects broader market shifts:Private equity is becoming more strategic, not just opportunisticReal estate is merging with telecom and cloudecosystemsGreen finance is now mainstreamin infrastructure dealsExpect trends such as:Colocation rollupsfunded by institutional capitalMA wavestargeting land-rich regional playersAI data center verticalization—with new cooling, power, and design standardsKeppel’s fund may be the first of many hyperscaler-aligned capital stacks to come.Infrastructure as InnovationKeppel’s $580 million hyperscale data center fund is more than an investment—it’s a blueprint for the future of digital infrastructure. It recognizes that:Hyperscaler demand isperpetual, not cyclicalESG is nowa prerequisite, not a differentiatorSpeed, flexibility, and global-local fluency arethe new currenciesin data center developmentAs hyperscalers race to build the physical foundation of cloud, AI, and immersive digital experiences, they need partners who understand the stakes—not just the specs.Keppel is betting not just on data centers, but on a new model of infrastructure co-creation. And in doing so, it offers both tenants and investors a compelling path forward.

In 2025, Jakarta is rapidly cementing its position as Southeast Asia’s fastest-growing data center hub. Traditionally overshadowed by Singapore and Hong Kong, Indonesia’s capital is now commanding the spotlight. A potent mix of cloud adoption, exploding internet usage, digital government mandates, and rising demand for low-latency infrastructure is driving Jakarta’s rise to prominence. But what’s fueling this meteoric growth, and what does it mean for the region’s digital economy?Why Jakarta—and Why Now?Jakarta’s rise isn’t a fluke—it’s the result of several intersecting trends that are making the city one of the most compelling destinations for data center development in the world.1. Exploding Internet and Mobile UsageIndonesia is the fourth most populous country on the planet and now boasts over210 million internet users, most of whom access the web via smartphones. The country has more than370 million mobile connections, and social media penetration is among the highest in the region.This digital-first behavior is straining existing infrastructure and necessitating a localized data backbone. Video streaming, mobile gaming, e-commerce, and digital banking services are all demanding more compute power and storage—ideally located within national borders for performance and compliance.2. Ambitious Government DigitalizationIndonesia’s government is leaning hard into digital transformation. Its“Digital Indonesia” roadmapaims to make e-governance services accessible nationwide, accelerate tech entrepreneurship, and ensure digital inclusivity. Key pillars include:e-Government platforms: Digital ID systems, online tax services, and virtual licensing.Smart city initiatives: Focused on Jakarta and satellite cities like Bekasi and Tangerang.Data sovereignty laws: Mandating certain types of data be hosted locally.Supportive cloud policies: Encouraging public-private partnerships in cloud infrastructure.This push is fueling demand for reliable, sovereign-compliant data centers that can host workloads across both public and private sectors.3. E-Commerce, Fintech, and Digital Lifestyle ExpansionIndonesia is home to one of the largest and fastest-growing digital economies in the Asia-Pacific region. Giants likeTokopedia, Shopee, Bukalapak, Gojek, andGoToare transforming how Indonesians shop, transact, and move.The country’se-commerce market is projected to reach $90 billion by 2026, anddigital payments adoption exceeds 75%. All of this generates massive volumes of data that must be stored and processed securely, quickly, and close to end users.Fintech and e-wallet growth—led by OVO, DANA, and LinkAja—adds further demand for compliant, always-on infrastructure with financial-grade security.Who’s Investing? Key Players Fueling Jakarta’s GrowthJakarta’s emergence hasn’t gone unnoticed. Both international cloud giants and regional infrastructure investors are making major moves.Hyperscalers Expanding PresenceAmazon Web Services (AWS)launched itsJakarta Regionin 2022 and continues to expand its Availability Zones.Google Cloudhas partnered with local telecoms to build infrastructure hubs serving Southeast Asia.Microsoft Azureis scaling its operations in Indonesia through collaborations withTelkomselandIndoKeppel.These hyperscalers are building not just capacity but also ecosystem partnerships with startups, educational institutions, and government bodies.Colocation and Carrier-Neutral FacilitiesEdgeConneXhas entered the Indonesian market, bringing scalable edge and core facilities.ST Telemedia Global Data Centres (STT GDC)is investing heavily in greenfield developments around Greater Jakarta.Princeton Digital Group (PDG)opened a 22MW campus inCibitung, with plans for further expansion.BDx Indonesia, backed byIndosat Ooredoo Hutchison, is modernizing legacy infrastructure and building new modular sites.Local Telecom and Infrastructure GiantsDomestic players are also stepping up:Telkom Indonesia(throughNeutraDC) is building out Tier III and Tier IV-grade facilities across Java.IndosatandXL Axiataare investing in hybrid cloud and edge capabilities.MNC GroupandBiznetare developing enterprise-ready digital infrastructure platforms.Jakarta’s Infrastructure EdgeWhy is Jakarta such a sweet spot for digital infrastructure?International Subsea ConnectivityJakarta is plugged into global subsea cable routes, and new high-capacity systems likeEcho(by Google and Facebook) andBifrost(by Meta and Keppel) are expected to go live between 2025 and 2026. These provide faster and more reliable data flow between Southeast Asia, the U.S., and other global hubs.National Terrestrial Fiber NetworksIndonesia’s fiber backbone is expanding rapidly. Providers are investing ininter-island and intra-city networksto reduce latency between urban centers like Jakarta, Surabaya, Medan, and Bali.This national grid underpins Jakarta’s potential as thenerve centerfor domestic digital services while serving as a launching point for regional content distribution.Proximity to End UsersWith more than30 million peoplein Greater Jakarta, data center operators can host latency-sensitive applications—such as online gaming, video streaming, and digital banking—closer to the population.Real Estate and Power: The Next FrontierJakarta’s data center expansion is radiating outward into satellite cities that offer land availability and energy infrastructure:Hot ZonesBekasi Cikarang(East Jakarta): Fast becoming thehyperscale corridor, with land zoned for industrial use, access to power substations, and space for multi-story facilities.Tangerang(West Jakarta): Attractive for its fiber ring, lower flood risk, and proximity to western cable landing stations.Energy StrategyIndonesia’s utility regulator (PLN) is working with data center developers ondedicated substations,redundant power feeds, andgreen energy sourcing. Power Purchase Agreements (PPAs) and solar farm collaborations are helping operators meet both uptime and ESG goals.Green Data Center Growth and Sustainability InnovationSoutheast Asia is under growing pressure to meet carbon-neutral goals, and Jakarta’s data center market is rising to the challenge:Sustainable Technologies and PracticesAdvanced liquid and free-air coolingsystems to reduce PUE.Modular data hallsfor efficient scalability.Vertical data center designsin dense zones like Central Jakarta.Green roofs and rainwater harvesting, particularly in flood-prone districts.Renewable Energy AccessWhile the national grid still depends heavily on fossil fuels, Jakarta’s data centers are entering into long-term green energy contracts and investing insolar, hydro, and geothermaloffsets.Additionally, ESG-compliant site development is becoming a competitive differentiator for attracting global clients—especially from finance, cloud, and AI sectors.Challenges: What Could Slow Down Jakarta’s Data Center Boom?Despite its momentum, several challenges remain:1. Power Grid ConstraintsWhile PLN is upgrading infrastructure, rapid demand may still outpace supply—especially in growth zones like Bekasi. Operators must plan carefully and lock in long-term power agreements.2. Flooding and Climate ResilienceJakarta sits just above sea level and is vulnerable to seasonal flooding. New facilities often require elevated construction, reinforced structures, and enhanced drainage systems—adding to upfront CapEx.3. Bureaucratic and Permitting ComplexityPermitting can be slow and inconsistent across municipal zones. Navigating zoning approvals and environmental impact assessments may delay projects unless managed through experienced local partners.4. Skilled Workforce ShortageAs demand for data center technicians, network engineers, and cloud architects rises, workforce development must keep pace. Training programs and industry partnerships with universities are becoming essential.The Road Ahead: Jakarta in 2027 and BeyondJakarta’s data center market is forecast todouble in capacity by 2027, reaching over500MW of IT load, positioning it above Bangkok, Kuala Lumpur, and Manila.Its future role includes:Regional Edge Gateway: Connecting Southeast Asia’s emerging hubs in thePhilippines, Vietnam, and Cambodia.Enterprise and Cloud Nexus: Serving hybrid cloud, AI, and SaaS workloads across finance, healthcare, and logistics.Innovation Sandbox: Hosting testbeds forAI training, IoT applications, andsmart grid analytics.Satellite Cities and Secondary ExpansionCities likeSurabaya,Bandung, andSemarangare expected to follow in Jakarta’s footsteps. With digital demand spreading across Java and Sumatra, Jakarta-based providers are already planningmulti-region capacity strategies.Jakarta Is the Epicenter of Southeast Asia’s Digital FutureJakarta is no longer a rising star—it’s a gravitational force in Southeast Asia’s digital infrastructure landscape. With surging internet usage, proactive digital governance, and heavyweight investors at the table, the city is setting the pace for data center growth across the region.For hyperscalers, colocation providers, developers, and enterprise customers alike, Jakarta presents an unparalleled blend of:Market demandInfrastructure readinessPolicy alignmentStrategic regional accessAs we move through 2025 and beyond, Jakarta is not just an option for digital infrastructure—it’s becoming thedefault destinationfor any organization seeking to scale in Southeast Asia.

Infrastructure Is the New Game EngineThe gaming industry is no longer just entertainment—it's infrastructure-intensive technology at scale. With over $200 billion in annual revenue and hundreds of millions of players globally, the success of a modern game depends as much on backend performance as it does on design, storytelling, and graphics.In 2025, latency, concurrency, regional reliability, and live operations define whether a game wins or lags behind. And meeting these demands requires infrastructure that is closer to users, faster than cloud, and purpose-built for real-time interactivity. Two technologies are answering the call:edge computingandbare metal servers.Why Infrastructure Now Matters More Than EverModern gaming is:Global– Players log in from every region, often playing cross-continent.Real-time– Competitive shooters, MOBAs, and MMORPGs demand minimal latency.Massive in scale– Games like Fortnite, Apex Legends, and Call of Duty regularly support millions of concurrent users.Data-heavy– Game patches, downloadable content, and cloud saves require constant backend synchronization and rapid, low-latency delivery.Even a few milliseconds of lag can ruin the experience. Unlike traditional video streaming, gaming is interactive—any delay in server responsiveness directly affects gameplay. The foundation of next-gen gaming is no longer just the game engine—it’s the global infrastructure behind it.The Edge Advantage: Bringing Compute to the PlayerEdge computing places servers and compute power closer to end-users. Rather than routing data through centralized cloud regions, edge nodes process traffic locally. This model offers several advantages for game developers and platform operators:Lower latency– By shortening the distance data must travel, games become more responsive.Faster content delivery– Patch updates and downloadable content can be delivered more quickly from local edge nodes.Better regional performance– Gameplay becomes more consistent across geographies, especially for players in emerging markets or outside Tier 1 hubs.Improved availability during peak loads– Regional traffic spikes are better managed with localized compute resources.Game studios are increasingly deploying edge infrastructure in Tier 2 and Tier 3 cities to support regional gameplay, reduce ping, and ensure uptime for real-time events.Why Bare Metal Beats the Cloud for Gaming WorkloadsPublic cloud platforms like AWS, GCP, and Azure are excellent for scale-out testing and burst capacity. But for core gaming workloads, bare metal infrastructure offers a performance and cost advantage that shared cloud environments can’t match.Key advantages of bare metal include:Dedicated resources– There’s no hypervisor layer or multi-tenant contention. Resources are allocated exclusively to a single client.High CPU and GPU performance– Ideal for rendering engines, physics simulations, and cloud streaming.Predictable cost structure– No surprise billing from elastic pricing models or egress charges.Deep control– Game studios can fine-tune kernel settings, networking, and firewall rules without hypervisor restrictions.Bare metal is commonly used for:Hosting game logic servers for real-time titlesManaging multiplayer sessionsOperating backend systems for persistent worldsSupporting infrastructure for AAA game launchesHybrid Infrastructure: Combining Edge, Bare Metal, and CloudIn practice, most game studios today use a hybrid infrastructure model. Here’s how responsibilities are typically split across different components:Edge nodesare used for matchmaking, lobby servers, and content delivery. By processing traffic locally, they minimize latency and improve regional gameplay consistency.Bare metal servershandle core gameplay, such as combat logic, world state, and session persistence. Their predictable performance makes them ideal for high-density multiplayer environments.Public cloudis leveraged for analytics, telemetry, community features, user accounts, and global-scale orchestration. Cloud platforms also handle overflow capacity when traffic exceeds baseline expectations.This hybrid approach lets developers achieve both performance and cost efficiency, deploying the right infrastructure for each use case.Leading Companies Building with Edge and Bare MetalSeveral major game publishers and platforms have already embraced this infrastructure strategy:Epic GamesUses bare metal and edge infrastructure to power Fortnite’s global operations. Local nodes reduce latency for esports, real-time events, and cross-region play.Activision BlizzardSupports Call of Duty’s multiplayer platform with hybrid deployments, combining global bare metal availability with regional edge performance. Sub-30ms latency is delivered in key regions through localized hosting.Unity and Unreal Engine DevelopersIndependent studios and game-as-a-service platforms frequently use bare metal to host multiplayer instances and match servers, especially for titles built with Unreal or Unity engines.Beyond Gameplay: Infrastructure for Streaming, eSports, and AIGame infrastructure supports more than just gameplay. Other use cases include:Game streaming (cloud gaming)– Requires ultra-low latency between controller input and server-rendered output.eSports hosting– Competitive matches demand real-time responsiveness and redundant uptime to avoid match disruption.Live patching and content delivery– Edge nodes accelerate regional rollouts of large files and DLC packages.AI and analytics– Real-time player behavior monitoring, NPC decision-making, and personalization engines benefit from proximity compute and low-latency inference.As games become more intelligent and personalized, infrastructure plays a critical role in enabling these new capabilities.Challenges Facing Gaming Infrastructure TodayDespite the promise of edge and bare metal, developers still face several operational and strategic hurdles:1.Latency Gaps in Non-Metro AreasPlayers in rural regions or underserved markets often lack access to edge nodes, leading to higher ping and variable performance.2.Load Surges During LaunchesGame updates, beta launches, and in-game events can bring 10x player spikes overnight. Infrastructure must scale quickly without compromising performance.3.Compliance and Data SovereigntyAs data regulations tighten in regions like the EU, APAC, and LATAM, infrastructure must accommodate localized storage and processing.4.Cost Management Across EnvironmentsDetermining when to use cloud, bare metal, or edge can be complex. Studios must balance budget constraints with performance needs, especially for global deployments.How Startups Are Taking Advantage of Edge and Bare MetalIndie developers and mid-sized studios are tapping into infrastructure-as-a-service platforms that offer:Instant provisioning of bare metal servers for development and production environmentsEdge locations in new geographic markets to improve performance for localized launchesTransparent pricing models without long-term commitments or complex cloud billingGPU-ready deployments for high-fidelity, graphics-intensive titlesThese capabilities level the playing field, allowing smaller studios to launch globally competitive experiences without hyperscaler budgets.What’s Next: Infrastructure for 5G, AI, and Cross-Platform GamingLooking forward, several macro trends will make edge and bare metal even more integral to game infrastructure:5G integrationwill reduce the need for powerful mobile hardware by offloading rendering to local edge nodes.AI-driven gamingwill use real-time inference to control NPCs, adjust game difficulty, and analyze player behavior dynamically.Cross-platform experienceswill require infrastructure capable of synchronizing gameplay across console, mobile, and PC with sub-second precision.These developments will push infrastructure needs beyond what legacy architectures can support. Edge and bare metal will offer the physical and logical proximity required to deliver synchronized, high-performance play across diverse endpoints.Infrastructure Is the Final Competitive EdgeIn 2025, the most successful games are powered by infrastructure that’s as dynamic, responsive, and global as the players they serve. Edge computing brings gameplay closer to the user. Bare metal ensures reliable, high-performance compute for the most demanding workloads. Together, they form the backbone of modern game delivery.Studios, platforms, and publishers that understand how to architect their backends with these technologies won’t just reduce lag—they’ll redefine what’s possible in gaming.Infrastructure is no longer invisible. It’s a strategic advantage, and in competitive gaming, every millisecond counts.