Enterprises Return to Colocation: The Appeal of Shared Facilities
TechTarget, Monday, July 27th, 2026
As AI needs rise and cloud costs escalate, organizations are reassessing colocation, adopting a balanced approach that prioritizes workload-specific strategies.
After years of aggressive cloud migration, enterprises are adopting balanced hybrid infrastructure approaches that prioritize workload-specific strategies rather than cloud-first defaults.
Rising cloud costs, AI infrastructure demands, and compliance requirements are driving renewed interest in colocation facilities.
Modern colocation has evolved beyond traditional outsourcing to offer hybrid connectivity, high-density computing, and managed services that complement on-premises and public cloud environments. Organizations now evaluate infrastructure choices through a workload-first lens, aligning each application with the environment best suited to its technical and business requirements.