IT leaders push back on cloud-only models
What happened
A new survey shows 94% of IT leaders worry about vendor lock‑in under cloud‑only setups, prompting many to adopt hybrid cloud strategies that mix on‑prem and cloud services reported. That shift elevates demand for buildings with flexible rack/colocation space and robust on‑site network infrastructure.
Why it matters
Parallels' Feb. 17, 2026 survey also shows IT teams are explicitly ranking "exit options" and automation above pure lift‑and‑shift cloud moves, signaling procurement language changes in RFPs and renewals. parallels.com Analyst forecasts put urgent capital behind colo and hybrid infrastructure: the global colocation/edge market is projected to grow from $10.5B (2025) to $12.7B in 2026, while the hybrid‑cloud market is forecast at roughly $194B in 2026 and rising at a double‑digit CAGR. thebusinessresearchcompany.com In-market supply is following demand in Los Angeles: CoreSite’s LA3 is a purpose‑built, ~180,000‑sq.‑ft. downtown facility (phase one 6 MW, planned 18 MW total) and One Wilshire just completed a major generator/electrical upgrade to support carrier density. dpr.com Logistics landlords are reallocating capital—Prologis disclosed an $8B‑scale data center push and reported a roughly 5.7 GW pipeline of data‑center power capacity as part of its 2025–2026 strategy. connectcre.com Local builds reflect the shift: Goodman’s LAX01 in Vernon topped out as a multi‑story, 49.5 MW project designed to be powered‑shell ready by mid‑2026 (≈32 MW IT capacity once fitted out), and the LA metro now lists dozens of carrier‑neutral facilities (market counts show ~78 sites and ~363 MW total capacity). goodman.com Lease‑level bargaining is changing—tenants now request carrier‑neutral cross‑connects and multi‑cloud adjacency language while preferring powered‑shell or "powered base" buildings for speed to market, a preference owners can monetize per industry guides on powered shells and interconnection value. equinix.com
Key numbers
- A new survey shows 94% of IT leaders worry about vendor lock‑in under cloud‑only setups, prompting many to adopt hybrid cloud strategies that mix on‑prem and cloud services reported.
- 17, 2026 survey also shows IT teams are explicitly ranking "exit options" and automation above pure lift‑and‑shift cloud moves, signaling procurement language changes in RFPs and renewals.
- thebusinessresearchcompany.com In-market supply is following demand in Los Angeles: CoreSite’s LA3 is a purpose‑built, ~180,000‑sq.‑ft.
- downtown facility (phase one 6 MW, planned 18 MW total) and One Wilshire just completed a major generator/electrical upgrade to support carrier density.
Quick answers
What happened in IT leaders push back on cloud-only models?
A new survey shows 94% of IT leaders worry about vendor lock‑in under cloud‑only setups, prompting many to adopt hybrid cloud strategies that mix on‑prem and cloud services reported. That shift elevates demand for buildings with flexible rack/colocation space and robust on‑site network infrastructure.
Why does IT leaders push back on cloud-only models matter?
Parallels' Feb. 17, 2026 survey also shows IT teams are explicitly ranking "exit options" and automation above pure lift‑and‑shift cloud moves, signaling procurement language changes in RFPs and renewals. parallels.com Analyst forecasts put urgent capital behind colo and hybrid infrastructure: the global colocation/edge market is projected to grow from $10.5B (2025) to $12.7B in 2026, while the hybrid‑cloud market is forecast at roughly $194B in 2026 and rising at a double‑digit CAGR. thebusinessresearchcompany.com In-market supply is following demand in Los Angeles: CoreSite’s LA3 is a purpose‑built, ~180,000‑sq.‑ft. downtown facility (phase one 6 MW, planned 18 MW total) and One Wilshire just completed a major generator/electrical upgrade to support carrier density. dpr.com Logistics landlords are reallocating capital—Prologis disclosed an $8B‑scale data center push and reported a roughly 5.7 GW pipeline of data‑center power capacity as part of its 2025–2026 strategy. connectcre.com Local builds reflect the shift: Goodman’s LAX01 in Vernon topped out as a multi‑story, 49.5 MW project designed to be powered‑shell ready by mid‑2026 (≈32 MW IT capacity once fitted out), and the LA metro now lists dozens of carrier‑neutral facilities (market counts show ~78 sites and ~363 MW total capacity). goodman.com Lease‑level bargaining is changing—tenants now request carrier‑neutral cross‑connects and multi‑cloud adjacency language while preferring powered‑shell or "powered base" buildings for speed to market, a preference owners can monetize per industry guides on powered shells and interconnection value. equinix.com
