Knowledge sovereignty, value overruns, and real-time efficiency calls for drive rising enterprise adoption of on-premises AI infrastructure
A brand new unbiased survey of 203 enterprise IT decision-makers reveals that the period of cloud-first AI methods is giving strategy to a extra deliberate, workload-driven method. Based on the Enterprise AI Infrastructure Survey 2026, commissioned by Cloudian, 93% of enterprises have already repatriated some AI workloads from public cloud, are within the means of doing so, or are actively evaluating repatriation. Practically 4 in 5 (79%) have already moved workloads, whereas 73% plan to additional shift towards on-premises or hybrid infrastructure over the following two years.
This survey confirms what our prospects say: when delicate information, predictable prices, and real-time efficiency matter, on-premises AI delivers benefits that public cloud alone can’t match.””
— Jon Toor
The survey, performed in February 2026 by way of the Centiment analysis platform, recognized three converging forces driving enterprise adoption of on-premises AI: information sovereignty considerations, cloud value unpredictability, and real-time efficiency necessities.
Key Findings
Knowledge sovereignty is the highest driver of on-premises adoption. When deploying AI involving delicate firm information, 91% of respondents would select on-premises, personal cloud, or hybrid infrastructure over public cloud. In the meantime, 74% flagged shadow AI—the unauthorized use of cloud AI instruments by staff—as a important or important safety concern, and 58% reported that information residency considerations have straight delayed or scaled again AI initiatives.
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Cloud AI prices are exceeding expectations. Forty p.c of enterprises report that precise cloud AI spending exceeds preliminary projections. Practically half cite cloud-specific value unpredictability—together with problem forecasting whole value of possession and consumption-based pricing fluctuations—as a barrier to increasing AI adoption.
Efficiency calls for favor on-premises deployment. Three-quarters (75%) of respondents recognized present or deliberate AI workloads that require or would profit from on-premises infrastructure for acceptable latency efficiency. Use circumstances embody real-time video analytics, manufacturing high quality management, and low-latency transaction processing.
AI budgets are rising to fund this shift. Eighty-six p.c of respondents anticipate their AI budgets to extend in 2026, with 40% projecting will increase of 25% or extra. Mixed with the infrastructure shift towards on-premises and hybrid fashions, these price range will increase sign important enterprise funding in on-premises AI infrastructure over the approaching yr.
“Enterprises aren’t abandoning the cloud—they’re getting smarter about the place AI workloads belong,” mentioned Jon Toor, CMO at Cloudian. “This survey confirms what we’re listening to from prospects day by day: when delicate information, predictable prices, and real-time efficiency matter, on-premises AI infrastructure delivers benefits that public cloud alone can’t match.”
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