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Next-generation hybrid cloud is not a new kind of data center. It is an approach to running workloads across public cloud and private infrastructure—including equipment an organization places in a colocation facility—while connecting and operating those environments as a coherent architecture. Colocation can give a business a place to control its own hardware near network and cloud connections; it does not, by itself, make that infrastructure cloud.

What hybrid cloud means in a colocation context

Google Cloud defines hybrid cloud as workloads deployed across multiple computing environments, including public cloud and at least one private environment. That private environment may be an on-premises data center or a colocation facility. The definition is provider-specific guidance, but it offers a useful distinction: hybrid describes where workloads run, not a particular product or facility type. Google Cloud Architecture Center’s hybrid and multicloud guide was last reviewed October 24, 2024.

In a colocation arrangement, an organization places its own equipment in a third-party data center. That equipment can serve as the private part of a hybrid design, alongside services running in public cloud. “Multicloud” is sometimes used inconsistently; here, hybrid means public cloud plus private infrastructure, while multicloud means using multiple cloud providers.

What colocation contributes

Colocation offers a physical location for customer-controlled infrastructure. In a hybrid design, that infrastructure may be connected to cloud services and other networks, letting an organization decide which workloads or components run on its equipment and which use cloud resources.

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Interconnection is a key practical consideration. A facility may support private connections between customer infrastructure, network providers, and cloud services. CoreSite’s 2025 report describes low-latency data exchange using private connectivity enabled by a data-center cross-connect. The actual providers, routes, bandwidth, availability, and terms depend on the specific facility, so confirm them before designing around a connection. Google’s hybrid and multicloud networking reference architectures, last reviewed January 13, 2025, also explain networking patterns across on-premises and cloud environments.

How to choose where a workload runs

There is no universal rule that a particular workload belongs in colocation, public cloud, or an on-premises environment. Compare the workload’s requirements and the operating model for each candidate location.

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  • Latency and performance: Identify where the workload exchanges data, how much it moves, and the response time and throughput it needs.
  • Security and compliance: Account for required controls, data handling, and jurisdictional obligations. Determine which party is responsible for each control.
  • Total cost: Consider the economics of the whole workload, including connectivity and operations, rather than comparing compute charges alone.
  • Operational responsibility: Establish who manages hardware, networking, cloud services, and incident response across the boundaries.
  • Capacity and resilience: Check whether the facility and its network can meet power, availability, and growth requirements. Requirements and capabilities vary by site.

Google’s architecture guidance treats hybrid design as a choice among patterns with different benefits and challenges, not as one prescribed configuration. The right placement depends on the workload and the services available to operate it.

Why interconnection deserves attention

Survey figures suggest that organizations may plan hybrid environments more often than they report having broad cloud-provider interconnection from their colocation provider. Treat these figures as findings from CoreSite-published surveys, not as a census of all enterprises or facilities.

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Survey finding What it measures
98% — CoreSite, 2025 Respondents implementing or planning a blend of public and private cloud, on-premises, and colocation services. CoreSite’s 2025 report announcement.
19% — CoreSite, 2025 Respondents saying their colocation provider offered interconnection to a variety of cloud providers. CoreSite’s 2025 report announcement.
68% — Foundry, 2025, as presented by CoreSite Respondents rating direct cloud interconnection “very important”; the comparable 2024 figure shown is 69%. CoreSite’s 2025 report PDF.
98% — CoreSite, 2024 Organizations reporting adoption or planned adoption of a hybrid model using colocation, private cloud, and public cloud. CoreSite’s 2024 report announcement.
95% — CoreSite, 2024 Respondents rating native, direct connections to major cloud providers from a colocation provider important. CoreSite’s 2024 report announcement.
31% — CoreSite, 2024 Respondents saying their current provider offered interconnection to a variety of cloud providers. CoreSite’s 2024 report announcement.

CoreSite sells colocation and connectivity, so its survey findings should be read with the publisher in view. The 2024 and 2025 provider-interconnection figures come from separate annual surveys; without comparable methods and samples, the difference between 31% and 19% does not establish a definitive trend.

What AI workloads change—and what they do not

AI and large language models increase demand for data processing and storage. CoreSite’s 2025 report landing page says respondents named cloud interconnection as the top reason for running generative-AI applications and workloads in colocation. CoreSite’s report page presents this as a survey finding, not proof that colocation is the right location for every AI workload.

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Colocation is one possible execution environment when its connectivity and infrastructure fit a workload. Whether it is preferable to public or private cloud depends on the workload’s data movement, capacity needs, network topology, costs, and operating responsibilities; AI demand alone does not establish that an application should move out of public cloud.

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What to verify before choosing a facility

General architecture guidance cannot establish whether a particular site supports a required design. Before committing, verify the facility’s available cloud and network connections, expected routes and bandwidth, capacity, availability terms, and responsibilities for operating and responding to incidents. Those details are facility- and provider-specific; a connection described as available in one location should not be assumed to exist at another.

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