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Enterprises are rethinking where their AI applications run

A CoreSite report finds enterprises are reassessing where AI applications run due to demand for compute, power, cooling, and low-latency connectivity. Public cloud supports experimentation, while colocation is preferred for predictable performance and dedicated infrastructure. Over half of organizations have implemented or are upgrading AI technologies, including generative AI and chatbots.

read1 min views1 publishedJul 13, 2026

Growing demand for compute capacity, power, cooling and low-latency connectivity is prompting organizations to reassess where AI applications run, according to CoreSite. Public cloud continues to support experimentation and rapid deployment, while colocation is increasingly used for workloads that require predictable performance, dedicated infrastructure or close proximity to cloud services and enterprise data. More than half of organizations have implemented or are upgrading AI technologies, an increase from the previous year. Generative AI, chatbots, predictive … More

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