UII UPDATE 375 | JUNE 2025
Intelligence Update

OPINION | Will power shortages drive an on-prem renaissance?

For nearly two decades, cloud and colocation companies have steadily eaten away at the on-premises data center’s share of corporate workloads. Even though the IT workload of these data centers has actually risen in this time, the real momentum, growth and excitement — for investors, vendors, innovators and chief information officers’ planning strategies — lies in colocation and cloud.

This trend has become so prevalent that many data center and IT infrastructure vendors design, price and market their products primarily for the global or multinational cloud and colocation companies. These companies form a significantly larger, faster growing and more ambitious market than the enterprise data center sector.

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