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93% of Enterprises Repatriating AI Workloads from Public Cloud
Survey finds data sovereignty, cost unpredictability, and performance demands driving shift to on-premises AI infrastructure
Mar. 3, 2026 at 7:47am
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According to a new independent survey of 203 enterprise IT decision-makers, 93% of enterprises have already repatriated some AI workloads from public cloud, are in the process of doing so, or are actively evaluating repatriation. The survey, commissioned by Cloudian, identified three converging forces driving enterprise adoption of on-premises AI: data sovereignty concerns, cloud cost unpredictability, and real-time performance requirements.
Why it matters
This survey signals a significant shift in enterprise AI strategy, as companies move away from a cloud-first approach and toward a more deliberate, workload-driven model that prioritizes data security, cost control, and performance. The findings highlight the growing demand for on-premises and hybrid AI infrastructure that can address the limitations of public cloud for mission-critical AI applications.
The details
The survey found that 91% of respondents would choose on-premises, private cloud, or hybrid infrastructure over public cloud when deploying AI involving sensitive company data. Additionally, 74% flagged shadow AI as a critical security concern, and 58% reported that data residency issues have delayed or scaled back AI initiatives. On the cost front, 40% of enterprises say actual cloud AI spending exceeds initial projections, and nearly half cite cloud-specific cost unpredictability as a barrier to expanding AI adoption. Finally, 75% of respondents identified current or planned AI workloads that require or would benefit from on-premises infrastructure for acceptable latency performance.
- The survey was conducted in February 2026.
- According to the report, 79% of enterprises have already moved AI workloads away from public cloud, while 73% plan to further shift toward on-premises or hybrid infrastructure over the next two years.
The players
Cloudian
A data storage and management company that commissioned the Enterprise AI Infrastructure Survey 2026.
Jon Toor
The Chief Marketing Officer at Cloudian, who commented on the survey findings.
What they’re saying
“This survey confirms what our customers say: when sensitive data, predictable costs, and real-time performance matter, on-premises AI delivers advantages that public cloud alone cannot match.”
— Jon Toor, Chief Marketing Officer
What’s next
The full Enterprise AI Infrastructure Survey 2026 report, including detailed methodology, charts, and analysis across all findings, is available for download at cloudian.com/lp/ai-survey-report.
The takeaway
The survey results highlight the growing preference among enterprises for on-premises and hybrid AI infrastructure that can better address data security, cost control, and performance requirements compared to public cloud offerings. This shift signals a maturing enterprise AI strategy that is moving away from a one-size-fits-all cloud-first approach.
