Yes, as of 2026, you can absolutely deploy Oracle’s cloud hardware within your own data center. This is a core part of Oracle’s Distributed Cloud strategy, allowing you to use the "rental" model (OpEx) while keeping the physical servers behind your own firewall.

Depending on whether you need a single rack or a whole data center, Oracle offers three primary "Cloud@Customer" options:

1. OCI Dedicated Region (The Full Cloud)

This is the "everything" option. Oracle essentially builds a mini-version of its public data center inside your building.

• What you get: Access to all 200+ OCI services, including AI, Kubernetes, and even Oracle Fusion SaaS applications (ERP, HCM).

• How it works: Oracle delivers, installs, and manages the hardware. It functions as an independent region with its own local control plane, meaning it can operate even if disconnected from the public internet.

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• Scale: In 2026, these regions have become much more "modular," starting with as few as 3 racks and scaling up to hundreds.

• Pricing: You pay the exact same consumption rates as you would in the public cloud.

2. Compute Cloud@Customer (Application Focused)

If you don't need the full service catalog (like specialized AI training or SaaS), this rack-scale solution is designed for running application workloads.

• What you get: OCI Compute (VMs), Block/Object/File Storage, and Networking.

• Best For: Modernizing on-premises apps, low-latency processing for factory floors, or meeting strict data residency laws.

• Compatibility: It uses the same APIs and "Flexible Shapes" (where you pick exact CPU/RAM counts) as the public cloud, so you can move workloads back and forth effortlessly.

3. Exadata Cloud@Customer (Database Focused)

This is the most popular choice for high-performance database needs.

• What you get: The world’s fastest database hardware (Exadata) delivered as a managed service. It supports both the Autonomous Database and the standard Exadata Database Service.

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• The Benefit: You get the performance of a dedicated physical machine but with the automation of the cloud (auto-patching, auto-scaling, and self-healing).

Comparison: Public vs. On-Premises "Rental"

Why do customers choose this in 2026?

• Data Sovereignty: Some countries now require certain data (like medical or financial records) to never leave a physical building.

• Latency: If you have a robotic assembly line, waiting 50ms for a round-trip to a public cloud region is too slow. Having the "cloud" 10 feet away solves this.

• Security: Many enterprises prefer a "Single Tenant" environment where no other company’s data is on the same physical rack.

Pro-Tip: The "Disconnected" Advantage

While Compute Cloud@Customer usually requires a heartbeat connection to an OCI parent region for management, the Dedicated Region is unique because it can be "dark." This makes it the preferred choice for government, defense, and national security agencies that need cloud power in a completely air-gapped environment.