Enterprises are increasingly adopting colocation data centers for high-density AI inference computing and hybrid cloud strategies. Modern facilities support 35 kW air-cooled cabinets and 70-150 kW liquid-cooled cabinets, allowing a pay-as-you-go approach to liquid cooling that avoids stranded capital. AI inference often needs ultra-low latency with large corporate data volumes, so organisations place applications near existing data centers or in edge facilities. VMware’s Private Cloud Outlook 2026 indicates that 83% of enterprises are planning or have completed workload repatriation. AFCOM’s 2026 report notes that 75% of enterprises expect AI workloads to increase overall capacity needs. Colocation offers scalable capacity, greater cost predictability for stable workloads, stronger cybersecurity for confidential AI applications, and international options that address data sovereignty and low-latency access for multinational operations.
Enterprises are increasingly adopting colocation data centers for high-density AI inference computing and hybrid cloud strategies. Modern facilities support 35 kW air-cooled cabinets and 70-150 kW liquid-cooled cabinets, allowing a pay-as-you-go approach to liquid cooling that avoids stranded capital. AI inference often needs ultra-low latency with large corporate data volumes, so organisations place applications near existing data centers or in edge facilities. VMware’s Private Cloud Outlook 2026 indicates that 83% of enterprises are planning or have completed workload repatriation. AFCOM’s 2026 report notes that 75% of enterprises expect AI workloads to increase overall capacity needs. Colocation offers scalable capacity, greater cost predictability for stable workloads, stronger cybersecurity for confidential AI applications, and international options that address data sovereignty and low-latency access for multinational operations.