Hybrid IT Dominates Enterprise Architecture as Colocation Anchors Critical Workloads
Event summary
- CoreSite's 2026 State of the Data Center Report reveals hybrid IT as the dominant enterprise architecture, with colocation serving as the foundation for critical workloads.
- Nearly 70% of CIOs now favor colocation and hybrid environments for AI/ML production workloads.
- Eight in 10 respondents rate native, direct connectivity to major cloud providers as 'very important' for colocation providers.
- Cost is no longer the primary driver for workload placement decisions; uptime, security, and performance have overtaken cost.
The big picture
CoreSite's report underscores the shift towards hybrid IT as the standard operating model, with enterprises prioritizing performance and security over cost. This trend is driven by the increasing complexity of AI workloads and the need for low-latency connectivity across distributed environments. The findings align with broader industry movements towards more intentional workload placement strategies.
What we're watching
- Workload Optimization
- How enterprises will refine workload placement strategies to balance performance, security, and cost across hybrid environments.
- AI Infrastructure Demand
- Whether colocation providers can scale power densities and connectivity to meet the growing demands of AI production workloads.
- Cloud Connectivity
- The pace at which seamless public cloud interconnection becomes a standard requirement for colocation providers.