Enterprises Are Rethinking Where Their AI Applications Run
Help Net Security, Monday, July 13th, 2026
Rising compute, power, and cooling demands are pushing enterprise AI workloads from public cloud toward colocation facilities.
Enterprises are reassessing where to deploy AI applications as demand for compute capacity, power, and cooling escalates.
Public cloud remains useful for experimentation, but colocation facilities are increasingly preferred for workloads needing dedicated infrastructure and predictable performance.
CoreSite's research found that more than half of organizations have implemented AI technologies, with generative and agentic systems now running in production.
Hybrid infrastructure has become the dominant deployment model while on-premises deployments decline.
Direct connectivity to cloud platforms is critical, with 79% of IT leaders calling native cloud connections very important when selecting a colocation provider.