Is It Time to Bring Your Data Back In-House? What Mid-Sized Companies Need to Know

Why some companies are reversing course on colocation—and what to consider if your offsite options are running out.

Insight by Drue Long, Director, Mission Critical at VVA

Over the last decade, the dominant trend in corporate data infrastructure was clear: move it offsite. As colocation data enters (Colos) and cloud services expanded, many companies—especially mid-sized firms—ditched their on-premise data rooms in favor of outsourcing. It was cleaner, simpler, and removed the need to staff and maintain your own facility.

But that trend is showing signs of reversal. And if you’re a corporate real estate or IT decision-maker, it’s worth paying attention.

VVA’s Drue Long, LEED AP is based in Northern Virginia (home to 70% of the world’s internet data flow!) and is seeing firsthand how the colocation market is shifting dramatically. Major players like Amazon, Google, and Microsoft are snapping up land and space in bulk—pushing smaller clients out of shared facilities they once relied on. In many cases, Drue’s seeing companies that moved to Colos now being forced to bring their data back onsite. But the problem is, not everyone has the space—or the plan—to do that. Here, Drue shares more on the trend and offers advice for mid-sized companies now needing to weigh their options.

The hidden cost of limited options

While Colos were once a flexible solution for small and mid-sized businesses, that flexibility is fading fast. Pricing has skyrocketed, and availability is increasingly reserved for hyperscalers and large enterprise contracts.

That’s leaving a lot of mid-sized firms in limbo. One of our corporate clients with a large campus recently completed construction on a new on-site data center after partially migrating offsite years ago. They had the benefit of space, but many companies don’t.

If your lease is coming up, or your office is relocating, this is the moment to re-evaluate. Ask:

#1: Do we own or lease our space, and for how long?

If you’re leasing and need a data center, do you have control over that property long-term?

#2: How much real-time data are we actually using, and how is that expected to grow?

Accurate growth projections are key to determining the size and scope of any new build.

#3: Are we reducing our footprint due to hybrid work?

You may be able to repurpose unused office space, but only if it meets the power and cooling requirements.

#4: Do we have the right in-house staff to manage an on-site data center?

Colos come with built-in support, oftentimes have triple redundancy, and industrial-scale cooling. Recreating that on your own is a serious investment.

#5: Do we understand the full risk profile of bringing data in-house?

A power outage on your own property could take your systems down unless you’ve built proper redundancy into the design.

Making the right decision for your real estate and tech strategy

This is not just an IT decision—it’s a corporate real estate decision. Data centers don’t operate in isolation. They require square footage, infrastructure planning, and a long-term view on location strategy.

Before making a move, companies need not just engineering expertise, but a rep who understands both mission-critical facilities and broader workplace real estate. Someone who can assess constructability, vet vendors, evaluate lease conditions, and flag where complexity might outweigh value.

In short: If your company once moved to colocation but is now outgrowing that model (or being priced out of it!) don’t wait until your options are limited. Start exploring now whether an on-site solution makes sense, and surround yourself with the right advisors to do it well.