It's official - more IT work is now off-prem than ever before, and it's sucking up a whole load of power

AI is quietly changing where businesses keep their data

by · TechRadar

News By Efosa Udinmwen Published 4 August 2026 2 min read

(Image credit: Getty Images)

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  • Third-party data centers now host more enterprise workloads than corporate server facilities
  • AI infrastructure is steadily pushing rack power requirements to unprecedented operational levels
  • Rising electricity costs continue squeezing already stretched data center operating budgets everywhere

Corporate IT infrastructure is increasingly moving beyond company-owned facilities as organizations rely more heavily on third-party data centers for critical workloads.

The Uptime Institute Global Data Center Survey found third-party sites now account for 46% of enterprise IT workloads, compared with 44% still running inside enterprise-owned corporate server farms.

The survey gathered responses from more than 800 data center owners and operators across multiple countries, with 52% located in North America and Europe. It found that 10% of respondents still rely on smaller IT rooms and server cabinets rather than dedicated facilities.

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Off-Premises becomes the default choice

Uptime Institute expects self-owned server halls to hold their current share of workloads through 2028, even as growth continues.

Analysts forecast that third-party facilities will expand further, reaching 48% of workloads and drawing capacity away from informal IT rooms.

Average rack power density has crossed 11 kW for the first time, driven by a shift toward higher-powered hardware across the industry.

Excluding a small cluster of ultra-high-density facilities, the typical rack density figure sits closer to 7.8 kW, up slightly from 7.5 kW in 2025.

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