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Companies are not simply abandoning public cloud: findings from CoreSite’s 2024, 2025 and 2026 State of the Data Center reports point to a more deliberate mix of public cloud, colocation and on-premises infrastructure. Hybrid IT adoption, AI workload placement and direct cloud connectivity are central themes, but the survey results are CoreSite-reported findings—not a universal measure of the data-center market.
What the 2024 report said about hybrid IT
The July 16, 2024 Data Center Knowledge article summarized CoreSite’s 2024 State of the Data Center Report. It said 98% of surveyed organizations had adopted or planned to adopt a hybrid IT model, while 60% were already using one, up from 55% in 2022. These figures describe that survey’s respondents, not all organizations. Read the Data Center Knowledge report.
In this context, hybrid IT means choosing among public cloud, colocation and on-premises systems rather than placing every workload in one environment. The practical question is which location best fits each workload’s cost, performance, scale, security and infrastructure needs.
Why AI and cloud connectivity feature in the findings
AI workload placement remains a consideration, not a completed migration
According to the 2024 CoreSite survey as summarized by Data Center Knowledge, 91% of respondents were considering moving generative AI applications from public cloud to colocation; the comparable figures were 81% for chatbots and 79% for predictive analytics. Those are stated intentions, not evidence that the applications were moved. The article also noted uncertainty about where AI workloads would ultimately land, so the results do not establish that AI is broadly leaving public cloud.
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CoreSite’s 2026 report page says nearly 70% of CIOs favored colocation data centers and hybrid environments for AI/ML workloads. That is a finding from its 2026 survey, not a directly comparable measure of the 2024 respondents’ plans. CoreSite describes the 2026 research as a survey of more than 300 IT leaders. See CoreSite’s 2026 report page.
Direct cloud connections are a provider-selection concern
In the 2024 report summary, 95% of respondents considered native, direct connections to major cloud providers important. Yet 31% said their current colocation provider offered interconnection to various cloud providers. That contrast suggests a gap between what respondents valued and what they said their provider offered.
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CoreSite’s 2025 page reported that 98% were implementing or planning a blend of public and private cloud, on-premises systems and colocation; 19% said their current provider offered interconnection across a variety of cloud providers. CoreSite’s 2026 page said all surveyed IT leaders considered direct cloud interconnection important when selecting a colocation provider, with 79% rating it very important. See CoreSite’s 2025 report page.
The 31% and 19% provider figures come from separate annual summaries. The pages do not establish that the samples, survey wording or methods were consistent, so the difference should not be read as a verified year-over-year change. CoreSite identifies Foundry as the research organization behind its 2025 and 2026 surveys; the published summaries do not provide enough common methodological detail to establish a harmonized time series.
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How to evaluate a workload’s best location
Labels such as “cloud,” “colocation” and “on-premises” do not decide placement on their own. Compare the workload’s requirements with the capabilities and costs of specific environments and providers.
- Total cost and predictability: Compare the full cost of running and connecting the workload in each environment, including whether costs are predictable for its expected use.
- Performance and scale: Consider the workload’s performance needs and how readily each option can accommodate changes in demand.
- Security and control: Assess the level of physical security and operational control the workload requires.
- Power and cooling: For infrastructure hosted in a data center, verify that the facility can support the workload’s power density and cooling requirements.
- Cloud and network connectivity: Check whether the provider offers the direct connections and network ecosystem needed to reach the relevant cloud services. Availability and suitability depend on the specific service and location.
Direct cloud connectivity is a service category, not a guarantee that every provider or facility supports every cloud. CoreSite’s resource catalog lists materials related to AWS Direct Connect, Google Cloud and Microsoft Azure ExpressRoute; that listing does not establish availability or fit at a particular location. Browse CoreSite’s resources.
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What the trend means—and what it does not
CoreSite’s report summaries depict a “cloud-smart” approach: organizations mix environments and give weight to direct connections, while considering colocation for some AI and analytics workloads. Equinix’s 2026 first-quarter filing likewise describes hybrid multi-cloud architectures and AI as factors accelerating enterprise demand for outsourced infrastructure and interconnection. That is Equinix’s description of its market, not independent market sizing. Read Equinix’s filing for the quarter ended March 31, 2026.
The survey figures should be treated as findings reported by CoreSite, with the year and source kept attached to each one. They support a case-by-case assessment of workload placement; they do not show that every organization is moving workloads out of public cloud or establish a single best infrastructure model.
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