Optimize Digital Experiences: Harnessing Cloud Connectivity and Colocation

In the race to deliver seamless digital experiences, the infrastructure supporting your business has never mattered more. With applications, data, and customer interactions scattered across the globe, the ability to move quickly and safely—while delivering a great end-user experience—has become a business imperative. As digital leaders focus on accelerating cloud adoption, unlocking AI, and ensuring security, a new trend emerges: the surging demand for AI/Machine Learning (ML) capabilities.

Hyperscalers are at the core of this growth, reshaping how compute resources are allocated by embedding AI foundations into IT infrastructure. According to Gartner, 50% of cloud compute resources will be devoted to AI workloads by 2029, up from less than 10% today. This shift signifies a fivefold increase in AI-related cloud workloads by 2029, highlighting a pivotal moment for organizations to evaluate whether their data centers and cloud strategies are prepared for this surge.

Read more about cloud infrastructure hyperscalers, including Amazon Web Services, Microsoft Azure, and Google Cloud Platform in our blog "Power Your Customers’ Growth With Cloud Infrastructure Solutions." The blog goes in-depth into what's happening in the cloud infrastructure market, and dives into opportunities for technology advisors and more. 

About this article

This article is part of our Thrive Blog Series, offering a glimpse into the kinds of trends and insights we’ll be exploring at Thrive 2025 in Austin, August 25-27. Watch for new posts on our blog through August.

Top analyst Gartner weighs in

Joe Rogus, Director, Advisory at Gartner highlights these trends are accelerating the shift in how cloud is transforming from a technology enabler to a business disruptor.

50% of cloud compute resources will be devoted to AI workloads by 2029, up from less than 10% today —Gartner

"Now is the time for organizations to assess whether their data centers and cloud strategies are ready to handle this surge in AI & ML demand. In many cases, they might need to bring AI to where the data is to support this growth." 

—Joe Rogus, Director, Advisory at Gartner

Why cloud interconnections matter

That’s where cloud interconnection and colocation come into play. These strategies enable organizations to meet AI demands by:

• Reducing latency: By positioning compute and connectivity closer to users and data sources, organizations can minimize lag and maximize responsiveness—critical for AI-powered experiences.

• Enhancing security: Secure connections and private colocation facilities mitigate vulnerabilities inherent in public networks.

• Increasing agility: Organizations can scale resources on demand, integrating new applications and technologies rapidly.

It's clear digital experiences are a top driver of business value.  That's why making the right infrastructure investment aligns directly with seizing this AI opportunity and ensuring business growth.

Breaking down the benefits—Seamless integration with hyperscalers & SaaS

Today’s enterprises don’t rely on a single provider. They stitch together resources from AWS, Microsoft Azure, Google Cloud, and countless SaaS vendors. Integrating with these providers over secure, dedicated interconnects through colocation facilities allows for reliable, high-performance connections with predictable costs.

Best practice: Use direct cloud on-ramps at colocated data centers to achieve fast, consistent connectivity—critical for data-intensive workloads and latency-sensitive AI applications.

Verizon's Secure Cloud Interconnect offering is one solution that delivers robust, multi-cloud connectivity. It empowers organizations with secure access to leading cloud providers like Amazon, Google, Microsoft, and Salesforce. The platform enhances network visibility and application performance with features such as dynamic bandwidth scaling and diverse interconnections for optimal redundancy. 

Scalable edge computing to meet AI demands

From generative AI to data-hungry apps, modern workloads are increasingly compute-heavy and decentralized. Edge compute—delivering storage and processing closer to end users or devices via a distributed network—enables faster insights and new digital experiences.

Worldwide spending on edge computing is forecasted to reach $378 billion in 2028.

—IDC

Driven by demand for real-time analytics, automation, and enhanced customer experience, edge computing and colocation sites, well-positioned geographically, are rapidly becoming the backbone of this edge revolution.

Supporting compliance and business continuity

With regulations tightening globally and the risks of downtime higher than ever, colocated infrastructure provides added peace of mind. Organizations can keep sensitive workloads in-country for compliance while leveraging disaster recovery and business continuity best practices.

Driving better customer outcomes

It’s not just about the tech—it’s about results. Organizations leveraging robust cloud connectivity and colocation are responding to customer needs faster, experimenting with new offerings, and delivering personalized digital experiences that build loyalty and differentiation.

Making the shift: What to consider

1. Map your current application landscape: Where do latency or reliability issues hurt your customer experience today? Which workloads could benefit most from cloud interconnection or edge hosting?

2. Evaluate hyperscaler and SaaS integrations: Are you tapping into the ecosystems that matter most for your business? Are connections secure and instant, or bottlenecked through public networks?

3. Revisit compliance and resiliency: Where do you need extra controls for sensitive data or regulatory adherence? How will you maintain uptime through outages or spikes?

Action steps for modern IT leaders to embrace hybrid & multi-cloud 

• Embrace hybrid and multi-cloud approaches to optimize for cost, performance, and risk.

• Take advantage of colocation hubs that offer direct, private access to multiple clouds and SaaS providers.

• Prioritize edge locations for workloads that demand fast, localized action—think AI, IoT, and real-time analytics.

• Support rapid innovation by choosing infrastructure partners with a proven ability to scale, integrate, and automate.

Thrive 2025: Explore the future of digital infrastructure

Want to dive deeper into how cloud connectivity and colocation strategies are powering next-level digital experiences? Join our Thrive 2025 breakout session, “Optimize your end-user digital experience with Cloud Connect and co-location.” Industry experts from Verizon will explore market trends, real-world use cases, and actionable steps for making infrastructure your growth multiplier—not your bottleneck.

Discover more trends and best practices at Thrive 2025, August 25-27 in Austin. Register today: www.appdirect.com/thrive.