** Jefferies sees tailwinds in Australia and New Zealand from Amazon's AMZN.O cloud service AWS investing in cloud infrastructure, alongside accelerating migration to the cloud

** Data centre operators NEXTDC NXT.AX and Infratil IFT.NZ are expected to benefit from the trend — Jefferies

** Brokerage says, AWS has also increased its network capacity, with telco Telstra TLS.AX leading network development efforts in Australia

** Adds, TLS is set to activate the Sydney to Melbourne connection in H2, with expectations for strong demand on that network

** Notes that corporations are accelerating their shift towards the public cloud due to AI integration, rising prices of VMware software by Broadcom AVGO.O

** Flags caution on Macquarie Technology Group, MAQ.AX which utilises VMware for its cloud services, may continue to feel the impact of the price hikes

** In 2025, MAQ, IFT and NXT are down 30.2%, 15.3% and 12.1% respectively while TLS is up 21.2%

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk http://www.x.com/thatstanishk))