Morgan Stanley said in a July 14, 2026 investor presentation on NTT Global Data Centers that NTT, the world’s third-largest data center operator, is outperforming Amazon and Microsoft through vertical integration. The report said NTT has a $20 billion backlog, equal to 7.7 years of revenue, a sign that demand from AI workloads is running far ahead of supply. Morgan Stanley also projected gross margin to rise from 39% in FY26 to 55% in FY31, indicating that AI customers are willing to pay a premium for high-quality capacity. According to the presentation, NTT’s advantages include 250 megawatts of liquid-cooling technology worldwide and a full fiber network, capabilities that pure-play data center operators cannot easily replicate. The report added that hyperscale customers would rather wait for NTT’s AI-native infrastructure than switch to rivals.
According to TechFlow, and citing Chaoxiang Research, Morgan Stanley said in a July 14, 2026 investor presentation on NTT Global Data Centers that NTT, the world’s third-largest data center operator, has outperformed Amazon and Microsoft through vertical integration.
The presentation said NTT has a $20 billion backlog, equal to 7.7 years of revenue, showing that demand for AI workloads is far exceeding supply. Morgan Stanley projected gross margin will rise from 39% in FY26 to 55% in FY31, which it said shows AI customers are willing to pay a premium for high-quality capacity.
Vertical integration at the center of the thesis
Morgan Stanley said NTT has 250 megawatts of liquid-cooling technology worldwide and a full fiber network, giving it a vertically integrated edge that pure-play data center operators cannot replicate.
The report also said hyperscale customers would rather wait in line for NTT’s AI-native infrastructure than move to competitors. Out of the $6.7 trillion in global data center investment, the presentation argued that the profitable segment is AI-native infrastructure, where NTT is taking the lead.
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