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This brings back painful yesteryear memories when consultants would push Microsoft Small Business Server for an on-prem all in one IT solution and charge extra to move to the cloud(colocation). A Linux-based alternative appeared named Clark Connect.

These are called co-los (co-location facilities). Probably any medium to large city has a few.

then private equity moves in, buys up the small and inefficient local data centers, and consolidates them into a massive conglomerate that can charge whatever they want