In the Uptime Intelligence report Will power shortages drive an on-prem renaissance?, Uptime describes how the rise of AI and a shortage of power may, ultimately, lead to a rise in colocation costs and a shortage of space availability, encouraging a revival in on-site data center investment.
There are signs that CIOs and CFOs are now beginning to see the enterprise data center as a more competitive option than they did in the period from 2010 to 2020. Data from the 2025 Uptime Institute’s data center survey (see Figure 1) suggests that the attrition of enterprise data centers (in terms of share of workload) is real, but is both slow and slowing. The rate of attrition is certainly much lower than was envisaged a decade ago, when it was widely accepted that enterprise data centers had no future.
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