70% of CIOs Favor Colocation for AI Workloads as Cost Loses Priority
AMT•American Tower’s CoreSite reports that 70% of CIOs now prefer colocation for AI/ML production workloads and 80% rate direct cloud connectivity as very important, underlining a shift to hybrid IT architectures anchored by colocation. Uptime, security and performance have overtaken cost as primary drivers across enterprise workload placement.
1. Hybrid IT Becomes Enterprise Standard
The 2026 State of the Data Center Report reveals hybrid IT as the dominant enterprise architecture, with organizations actively balancing cloud, colocation and on-premises deployments. Nearly 70% of CIOs now favor colocation for AI/ML production workloads, while eight in ten rate direct connectivity to major cloud providers as very important.
2. Performance and Security Overtake Cost
Enterprises have shifted from cost-driven infrastructure planning to prioritizing uptime, security and performance, especially for AI and high-density compute tasks. This new focus reflects growing demands for resilience and low-latency across distributed workload environments.
3. Strategic Implications for CoreSite
Rising demand for power-dense, interconnected data centers positions American Tower’s CoreSite to capture increased colocation market share. Enhanced utilization and premium pricing potential in hybrid architectures could drive revenue growth and strengthen the company’s competitive edge.
