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Data Center World Australia
7-9 September, 2026
Melbourne Convention & Exhibition CentreMelbourne, Australia
Where Will Enterprise Data Center Operators Run Their AI?

As more companies put AI capabilities into day-to-day use for employees and customers, CIOs and their data center ops teams face the question: Where should those AI workloads run? On-premises data centers? Colocation facilities? Public clouds? A few recent surveys illuminate how enterprise data center leaders are thinking about this choice.

We’re talking here largely about enterprise data centers, meaning the airlines, banks, manufacturers, universities, retailers, and other organizations that run their businesses using data centers, using AI as a part of that tech stack.

One of the most interesting data points I found on this question points to on-premises data centers falling significantly this past year as the place to run AI workloads. At the same time, on-prem is growing in popularity to hold AI data. Below are more on this and other survey results I found while researching this topic.

Also, a dash of perspective as we look at this. For many enterprise data center operators, AI isn’t yet the biggest priority. Heresy, I know. Bur research and anecdotes suggest that finding the right data center model for AI workloads is a work-in-progress issue this year, something that many are just exploring now.

As one example, I recently talked with the data center leader of a midsized retailer who has one rack of AI compute infrastructure, with no liquid cooling in the data center. AI isn’t a huge share of that data center today. But the company does have an AI leadership group that’s been meeting every week for the past two months, where business unit leads suggest AI use cases and the IT and infrastructure teams helps them assess and execute on those. So, the AI load is sure to grow.

With that, here’s some of the best current research I’ve spotted on the topic:

On-premises data centers dropped dramatically in the past year as the most suitable place to run AI or machine learning workloads

In 2025, nearly half (46%) of enterprise IT leaders cited on-premises as most suitable for AI, but that dropped to 18% this year, in a survey by Foundry, backed by the colo CoreSite, of 300 enterprise IT leaders across industries. Hybrid jumped from 12% to 33% and public cloud rose from 7% to 14%. Colo held steady around 36% this year.

GPUs are moving to public cloud, but AI data is moving away from it

There’s a super interesting and fast shift here spotted by a Flexential survey of 350 IT decision-makers. From 2025 to 2026, the share of companies running most of their GPUs in the public cloud went from 34% up to 54%. On the flip side, companies running most of their GPU through GPU-as-a-service AI specialists dropped 10 points and those doing so in on-premises data centers fell 9 points, to just 4% of orgs.

Meanwhile, AI data shifted in the other direction, away from public clouds. In 2025, 47% of organizations cited public cloud as one place where they housed their AI data, and in 2026 that fell to 26%. Meanwhile, those housing AI data on-premises jumped 10 points (to 30% housing AI data on-prem). Those using colo rose 14 points (to 34%) and hybrid increased 8 points (to 56%).

Most companies have AI in production

The Foundry/CoreSite survey found most companies were in production with GenAI apps (64% in production), chatbots (58%), and agentic AI (49%). Another quarter to a third were in pilot or proof of concept for those uses, and less than 2% had no plans to use them.

AFCOM’s State of the Data Center 2026 survey, published in January, found 74% of organizations planned to deploy AI-capable solutions in their data centers, including to support GenAI (46%), compete in a new market (44%), create a new service (38%), or support client use cases (36%).

But managing AI workloads isn’t necessarily enterprise IT’s biggest headache

Some important perspective: just 22% of respondents to the AFCOM 2026 State of the Data Center report cite managing high-performance workloads such as AI and LLMs as one of their primary challenges. Rising costs for power and cooling (40%), scaling up to meet power and cooling demands (37%), and talent shortages (36%) loom larger.

Research and anecdotes suggest that AI use is definitely into full production in many enterprise organizations, leading to swift shifts in what infrastructure those workloads run on. It also suggests this AI adoption is still in the early stages, meaning more and more dramatic such shifts are coming our way.

Related news

Bridging the Gap: 5 Tips for Cross-Functional Collaboration That Enables AI Transformation

Ask ten executives who owns AI at their company, and you’ll get ten different answers. IT says it’s not their call. Legal gets blamed for slowing everything down. HR figures it’s someone else’s department. Meanwhile, teams are buying tools nobody signed off on, duplicating work and hoping it all sorts itself out. Sound familiar?

Lisa Duerre spent the last year studying why that happens. As part of an applied research project for her leadership consulting collective, RLD Group, she studied where AI adoption breaks down inside organizations, and where it works. The findings from RLD Group’s research helped inform a collaboration on the CONVERSATIONS WORTH HAVING®: The Human Accelerator for Artificial Intelligence Quick Start Guide, which is available as a digital download.

Duerre views organizations through what she calls an I–WE–US leadership framework, defined like this:

  • I: individual judgment and accountability

  • WE: workflows and cross-functional coordination

  • US: governance, decision rights and organizational measures

“All three levels are contributing to the breakdown or the alignment, whether people realize it or not,” Duerre says. “AI is amplifying whatever’s already true in your system. The teams that were disconnected before AI showed up are more disconnected now. The ones that talked to each other are moving faster, together.”

If your company is ready to collaborate better with AI tools, Duerre shared the following tips. Take a look.

Form a cross-functional AI committee

Duerre’s background is in HR, and she says most HR leaders assume AI ownership belongs to IT. It doesn’t, at least not exclusively.

“Ownership needs to sit at the system level,” Duerre says. “Each function carries a piece of it, based on what they do, how well they understand that part of the business and how their work depends on everyone else’s. AI is flattening how we work. You can’t just keep it in your own business unit anymore. You have to look all around you.”

For starters, she suggests building a cross-functional AI committee instead of having one department make all the AI decisions. Legal, IT, cybersecurity and HR should be on the committee, Duerre says.

“If you have a C in front of your title, you should be on that committee,” Duerre says. “That’s how I look at it, because it’s a system-level solution.”

During these meetings, Duerre says you’ll find out that some departments are racing ahead with AI and others are holding back.

“Both sides need to name the trade-offs aloud,” Duerre says. “With teams moving too cautiously, you have to talk about the opportunity cost of falling behind. With teams sprinting ahead, you have to ask them what happens if they don’t bring everyone else along with them.”

Figure out how to use AI strategically

Most companies spent the past two years telling employees to use AI with anything, without much strategy behind it. Duerre says that’s starting to catch up with organizations as finance teams scrutinize the cost.

Her rule of thumb: if you can’t articulate the goal and how you’ll measure success, don’t roll it out yet.

“Teams that use AI well have a strategy behind it,” Duerre says. “They’ve kicked the tires on what they’re trying to solve it for. You need to ask yourself, ‘Which business outcome are we trying to improve, and what must be aligned for AI to create measurable value?’”

Here are a few examples of how to use AI strategically:

  • A company could select a workflow that regularly creates delays, redesign it with AI and test the new approach. Then, measure whether it improves time, cost, quality or capacity.

  • Use AI to support early sales outreach and qualification across markets and languages. AI can help a business reach and assess more potential opportunities, while people remain responsible for understanding the customer and building trust.

  • Flag patterns in customer complaints across multiple channels with AI, so leadership can see recurring problems before it shows up in satisfaction scores.

Check-in regularly during an AI rollout

Duerre recommends a minimum weekly check-in during any AI rollout, sometimes daily depending on complexity. But the format matters more than the frequency. Status updates don’t cut it.

“Ask, ‘What are we learning and what are we surprised by?’ That’s a question that helps you with your check-ins, versus, ‘It’s in three products now and we’ve tested six,’” Duerre says. “That doesn't help, because you’re having these meetings to figure out what’s working and why. If you ask more strategic questions, you can move even faster.”

Publish AI guardrails

Employees who don’t know what’s allowed with AI will either freeze or go around the system entirely, Duerre says. She recommends publishing clear, specific guardrails on what’s okay and what’s not. Come up with some real examples, and pair them with an intake process that doesn’t require writing a thesis to get an approval for using it.

"The approval path should be lightweight, not bureaucratic,” Duerre says. “Something like, ‘If you’re going to use AI, here’s the path. And if it needs approval, here’s three or four quick questions for you to answer.’”

Take employee anxiety about AI seriously

“AI is just a tool” is a phrase Duerre hears at nearly every conference she attends, but she doesn’t buy it.

“Saying it’s a tool is underselling what’s happening at companies right now,” Duerre says. “AI is changing how we work. It’s changing how we lead teams.”

Duerre wants leaders to remember that a lot of employees are fearful of AI. Pew Research Center found 52% of U.S. workers are worried about the future impact of AI in the workplace.

Employees who feel AI is being “done to them,” instead of built alongside them are especially anxious, she says.

“Leaders need to recognize that anxiety is contagious,” Duerre says. “As a leader, this is your opportunity to show up as the safe, steady person who is showing what you’re learning with AI. And don’t be afraid to show how you’ve failed using AI, too.”

Duerre asks every executive she works with: “Who am I with AI?” and encourages them to pass this mindset question along to their employees, too.

“AI is now your teammate,” Duerre says. “Phrasing it as, ‘who am I with AI?’ is different than, ‘what’s going to happen to me with AI?’ You really want your team to feel empowered with AI and show them how it can help accelerate their career.”

Put these ideas into action

Rewiring your organization for AI requires more than the right tools. It takes shared language, practical frameworks, and a willingness to keep learning. Here are a few resources to help you take the next step.

  • Enterprise AI Playbook: Practical frameworks and executive discussion questions to help IT, HR, and business leaders align around AI that delivers measurable value.

  • Work-First AI Use Case Assessment: Identify the workflows where AI can have the greatest impact before you invest in new tools.

  • The REWIRED Brief: Get weekly insights, real-world case studies, and practical advice on leading AI transformation.

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