2025 State of the Data Center

Why Colocation Is Becoming Central to Enterprise IT

Enterprises are under pressure to modernize infrastructure, control costs, and support AI-driven workloads-all at the same time.

But the public cloud alone isn’t enough.

GPU-intensive, high-density applications are revealing its limitations. As a result, more organizations are adopting hybrid environments that combine:

  • On-premises systems
  • Cloud platforms
  • Colocation

Colocation is now central to enterprise IT strategy.
It delivers the performance, control, and compliance today’s organizations demand—plus the scalability to grow alongside innovation.

Why it matters:
Colocation enables direct cloud interconnection, which helps IT teams:

  • Distribute workloads seamlessly
  • Minimize latency and data transfer costs
  • Accelerate innovation

As AI adoption increases, colocation provides a flexible, secure, and cost-effective foundation for digital infrastructure.

Read the full report—featuring insights from 300 IT leaders and in-depth interviews across key industries—to learn how colocation and connectivity are transforming enterprise IT in the AI era.

2025 State of the Data Center

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