2025 Industry Trends, Strategy and Innovation
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New research from Foundry (an IDG, Inc. company) reveals IT leaders are rethinking their IT operations across colocation, cloud and on-prem environments to find the ideal placement for their critical workloads, including AI and high-performance computing. Data shows colocation data centers that offer robust connectivity and security are key to meeting future infrastructure demands and managing costs.
Hybrid Infrastructure in the AI Era
Actionable insights for interconnecting AI and other workloads to achieve hybrid IT infrastructure performance, flexibility and cost management goals.
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Key Findings
From the Report: Problems, Solutions and Insights
DATA CENTER REPORT:
The Problem
The CIO
The CTO
The CTO
The Executive
The Executive
The IT Director
The IT Director
The CIO
The CIO
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to Move AI Workloads to Colocation is Cloud Interconnection
Survey respondents stated the top reason to run generative AI applications and workloads in a colocation data center is cloud interconnection. High-density power and cooling capabilities (including liquid cooling), cost, compliance and security follow close behind.
Cloud Interconnection: The AI Power Move
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of IT Leaders say Connectivity is Must-Have, but 19% Say It's Missing
An overwhelming majority of CIOs demand direct cloud connections and rank cloud interconnect as the #1 factor in accelerating their digital transformation. Yet only 19% say their current colocation provider offers interconnection to a variety of cloud providers.
Connectivity Chasm: Must-Have, But Missing
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of CIOs Say Hybrid IT is the New Gold Standard
Over the past four years, survey results consistently show that IT leaders are all-in on hybrid, “cloud-smart” infrastructure – with 98% implementing or planning a blend of public and private cloud, on-premises and colocation services to run workloads where they perform best.
Hybrid IT: The New Gold Standard
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Tops the Checklist for Data Center Providers' Key Attributes
For the past four years, security has ranked No. 1 on the list of attributes that IT leaders look for in a colocation provider. While the criteria for choosing the right provider are expanding and evolving, there’s one constant: physical security.
Top of the Checklist
The #1 Reason
98%
93%
Physical Security
Balancing cost and performance of IT infrastructure amid rapid AI development and economic uncertainty.
The Solution
High-density power and cooling along with connectivity and AI-optimized hardware in a colocation data center, meeting AI workload requirements without skyrocketing technology and operational costs.
Data Insight
Data Insight
The report reveals a calculated migration of AI workloads–spanning recommendation systems, GenAI and augmented AI applications–into colocation data centers. Powering this shift are three forces:
The demand for peak performance
Savvy cost control
Hybrid flexibility that today’s AI-driven enterprises need to compete and thrive
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Data Insight
The Problem
Limited interconnection services from their current colocation providers, creating challenges to seamless hybrid cloud integration and connecting digital ecosystems.
The Solution
Engage a colocation provider with robust direct cloud connection that enables low-latency, secure access to services and reduces egress costs.
The IT Director
Data Insight
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Although direct cloud connectivity is deemed essential by the vast majority of survey respondents, only 19% report that their colocation provider actually delivers interconnection across a variety of cloud providers–revealing a surprising gap between expectation and reality in today’s hybrid IT landscape.
Data Insight
The Problem
Driving innovation and increasing revenue while managing costs in an uncertain economic environment.
The Solution
Implementing scalable, cost-effective infrastructure that supports hybrid IT models and high-performance AI workloads can fuel growth and accelerate technological advancements.
The Executive
Data Insight
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From an IT infrastructure standpoint, hybrid is no longer the future–it’s the now. A striking 98% of organizations have either fully embraced or are gearing up to adopt a hybrid model that blends on-premises, colocation and cloud environments, unlocking the perfect trifecta of performance, cost-efficiency and reliability.
Data Insight
The Problem
Managing compliance, security and control over data while adopting AI and enhancing hybrid IT models.
The Solution
Strong physical security, compliance certifications and transparent management ensure the regulatory alignment and data governance that are essential in today’s digital economy.
The CTO
Data Insight
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As colocation data centers become the backbone of hybrid IT strategies, the checklist for selecting the ideal provider grows ever more extensive. Yet one non-negotiable remains steadfast: security. For four consecutive years, physical security has been the top priority for IT leaders–proof that when it comes to safeguarding critical infrastructure, there’s simply no compromise.
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