Security and Control Concerns Highlighted in Data Center State Report
In the ever-evolving landscape of enterprise IT infrastructure, a significant shift is underway, as highlighted by the "2025 State of the Data Center" report[1]. The report reveals that an overwhelming 98% of leaders are planning to adopt a hybrid IT model or have already done so, indicating a fundamental reshaping of infrastructure strategies due to AI.
This shift is influenced by the balance between performance, security, compliance, and cost management that colocation facilities offer. Colocation, a blend of public, on-premises, and colocation options, is favoured for its ability to shorten the curve between AI investment and return on investment (ROI)[2].
However, a critical gap exists in connectivity services. Only 19% of respondents said their colocation providers offer interconnection services, which are essential for optimizing hybrid environments[1][4]. Connectivity, therefore, becomes a crucial factor for what companies can do with their data and the return they can get from AI deployments.
The data-intensive nature of AI workloads necessitates interconnection—the direct linkage between networks and cloud services. This reduces data transfer times and egress costs, enabling businesses to more efficiently run complex AI and business intelligence workflows[5]. The colocation model helps bridge the gap between the cost and complexity of running AI on-premises or fully in the cloud.
The need for physical security in colocation facilities is also highlighted as an attractive feature for respondents, being one of the top three business drivers for shifting workloads to a colocation center[3]. Security, indeed, is the number one factor in choosing a colocation provider[3].
As AI continues to revolutionize infrastructure strategies, companies must navigate digitization demands, AI innovation, and economic pressures. Improving connectivity services and energy infrastructure integration remain critical challenges to fully unlocking AI’s potential in these hybrid environments[1][2][5].
Moreover, inconsistencies in AI regulation and potential future changes create a need for a more forward-thinking approach to security. Relationships with specialists in AI infrastructure are also important for organizations to maximize their return from AI deployments[6].
In conclusion, colocation data centers are becoming central to hybrid IT strategies, offering greater control, transparency, and flexibility to enterprises. By addressing connectivity challenges and embracing a more forward-thinking approach to security, businesses can capitalize on the benefits of colocation and AI deployments, driving innovation and growth in the digital age.
[1] "2025 State of the Data Center" report [2] "The Impact of MLOps on the Data Center" (further details not provided in this paragraph) [3] "The need for physical security in colocation facilities" [4] "Critical gap in connectivity services" [5] "Interconnection—the direct linkage between networks and cloud services" [6] "Relationships with specialists in AI infrastructure"
- The digital transformation of the manufacturing industry is accelerating due to the adoption of hybrid IT models, with 98% of leaders planning to implement or already using this approach, as revealed in the "2025 State of the Data Center" report.
- In the landscape of industry and finance, data-and-cloud-computing technology is driving the migration of workloads to colocation facilities, as these offer a blend of public, on-premises, and colocation options, and can help reduce the curve between AI investment and return on investment.
- As AI deployments become more prevalent, the need for interconnection services, which enable direct linkage between networks and cloud services to reduce data transfer times and egress costs, is increasing in colocation data centers, addressing a critical gap that has been identified.
