I am pretty sure part of it is also some kind of greenwashing move to abstract away your carbon footprint. Like exporting pollution to far east by producing there. Sure there are tools to calculate your energy/carbon footprint from cloud workloads but if you don't operate a datacenter yourself anymore you can't be as much accountable as the cloud vendor is.

But there will surely be a backlash and an - at least partial - return to operating your own datacenter for some companies in the future.