DigitalOcean's RPO Surges 10X YoY as AI Cloud Demand Accelerates
Event summary
- Q2 2026 RPO expected to exceed $800M, up more than 10x year-over-year from Q2 2025.
- Weighted average life of obligations increased from 1.6 years to over 3 years.
- Company secured 20 MW additional data center capacity for late 2027/early 2028, bringing total committed capacity to ~155 MW.
- Q2 2026 revenue growth projected at ~29% YoY with aEBITDA margin and non-GAAP net income per share at or above top-end guidance.
The big picture
DigitalOcean's record RPO growth underscores the surging demand for specialized AI cloud infrastructure, particularly for inference and agentic workloads. The company's ability to secure long-term customer commitments at scale positions it favorably against traditional cloud providers, though execution risks remain as it expands capacity to meet future demand.
What we're watching
- Sustainability of Demand
- Whether DigitalOcean can maintain its rapid customer acquisition pace and high-margin commitments in the competitive AI cloud space.
- Execution Risk
- The pace at which the company can scale data center capacity to meet accelerating demand without operational bottlenecks.
- Competitive Differentiation
- How DigitalOcean's AI-Native Cloud platform will continue to separate itself from bare-metal GPU rental competitors as the market evolves.
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