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- 🏗️ AI boom drives 53% spike in data center spending
🏗️ AI boom drives 53% spike in data center spending
AI Data Center Arms Race, Cloud Misconfigurations Persist, Human-Centered Leadership from Nike’s Former IT Chief
Zack Tembi
July 03, 2025
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Welcome to this week’s edition of CIOsurge!
This week:
Hyperscalers drove a 53% spike in Q1 data center spending, leaving CIOs to rethink infrastructure amid tight GPU supply.
Despite security gains, nearly 1 in 10 public cloud buckets still leak sensitive data due to misconfigurations and access flaws.
In our exclusive interview, Reuben Broadfoot (ex-Nike IT leader) shares why motivation, not technology, is the foundation of successful transformation.
Let’s make this week a game-changer.
Stay sharp. Stay ahead.
🏗️ AI boom drives 53% spike in data center spending
Data center CapEx surged to $134 billion in Q1 2025, up 53% year-over-year, driven by hyperscaler demand for AI infrastructure, according to Dell’Oro Group. AWS, Google, Meta, and Microsoft accounted for nearly half of that spend. Despite tariff risks and project cancellations, major cloud providers continue to invest aggressively in GPU capacity and AI compute to meet soaring demand.
This isn’t just a data center buildout—it’s an arms race. Hyperscalers are investing at a historic clip, locking in early advantage in AI infrastructure. But for CIOs outside the Fortune 10, this means capacity constraints and limited GPU access unless you’re at the front of the queue—or have a strong hybrid strategy.
If your roadmap includes generative AI or large-scale model hosting, now’s the time to reassess your infrastructure options. With hyperscalers stretched thin, private or colocation models might buy you reliability while the big players scramble to meet their own demand.
- Zack Tembi
🔓 Sensitive data still leaking from cloud buckets despite security gains
Tenable’s latest report found that nearly 1 in 10 publicly accessible cloud storage buckets contain confidential or restricted data, with AWS buckets leading in exposed secrets. While more organizations are deploying identity protections and “toxic cloud trilogies” are declining, misconfigurations and credential leaks still pose urgent risks across major platforms.
Every CIO should treat misconfigured cloud storage as an ongoing threat—not a solved problem. Even with better identity safeguards and fewer triple-threat environments, the fact that secrets are still leaking from user data and environment variables is a red flag.
Now’s the time to double-check bucket policies, container configurations, and IAM hygiene. Shadow exposure isn’t just an ops issue—it’s a reputational risk waiting to happen. We need visibility, policy enforcement, and automation in place before attackers find the next weak link.
- Zack Tembi
đź’ˇ Guest Expert Insights: Reuben Broadfoot
🔑 People Are the Real Drivers of Success
My first takeaway from speaking with Reuben Broadfoot, founder of Broadfoot Consulting and former IT leader at Nike, is that people are the real drivers of success. I learned that even the most advanced technology falls flat without genuine motivation and engagement from the team.
Every organization—from a scrappy startup to a hospital system or a global bank—has its own culture and dynamics. Reuben stressed that leaders must uncover what truly moves each person, then link those motivations back to the company’s values. When individuals see their own goals reflected in their work, you boost cohesion, performance, and retention.
I’ve seen firsthand that tech investments only pay off when backed by committed, energized people. As Reuben said, “You can build the perfect system, but if you don’t capture people’s imaginations, nothing happens.” That insight drives me to keep communication open, encourage honest feedback, and create environments where everyone knows their contribution matters.
🗞️ At A Glance
đź’ˇ CIO Spotlights
Theresa Meadows named symplr CIO in Residence to drive healthcare IT innovation
symplr appointed healthcare IT leader Theresa Meadows as Chief Information Officer in Residence, leveraging her expertise to shape product strategy.
Meadows previously served as Chief Digital and Information Officer at Cook Children's Health Care System and held key roles at Ascension Healthcare.
CEO BJ Schaknowski emphasized Meadows' blend of clinical insight and technical expertise as critical for aligning symplr’s solutions with healthcare CIO needs.
Bloomin’ Brands taps hospitality veteran Rafael Sanchez as new CIO
Bloomin’ Brands appointed Rafael Sanchez as SVP and CIO, effective June 30, replacing Gagan Sinha who held the role for less than a year.
Sanchez brings extensive hospitality IT leadership from Davidson Hospitality, Six Flags, Carnival, and Burger King.
CEO Mike Spanos praised Sanchez’s experience, highlighting his ability to strengthen operations and tech-driven guest experiences.