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UK organizations are increasingly moving cloud tasks back in-house, driven by security issues and cost overruns. While traditional workloads return to local servers, the cloud still plays a crucial role in hosting AI and modern applications, reflecting a more selective and cost-effective approach to cloud adoption.

Data centers now consume 1-2% of global electricity, with efforts to improve efficiency amid rising internet traffic. Challenges include significant water use and the push towards renewable energy, with tech giants aiming for carbon neutrality and exploring innovative energy solutions.

Cloud-based generative AI often underperforms due to complex architecture and varied challenges, including deployment intricacies, model optimization, security, and compliance issues. Best practices like automation, serverless computing, and continuous model updates can mitigate these issues, improving efficiency and meeting user expectations.