Campus IT leaders are reorganizing cloud strategy as AI workloads move beyond research and into student services and administration. Institutions are weighing where to run models for recruitment, retention, advising and safety while balancing data privacy, security and compliance, the report found. The shift is forcing new governance frameworks around vendor selection, contractual clauses for model access, and data residency — decisions that implicate institutional risk officers, general counsel, and registrars. The analysis highlights that cloud choices now carry pedagogical as well as technical consequences: where a model runs affects latency for real-time advising, export-control exposure for research datasets, and FERPA/HIPAA compliance. IT leaders are adopting hybrid architectures and tighter procurement controls to align AI placement with institutional mission. For campuses with limited cloud expertise, the report recommends centralized review committees and cross-functional playbooks to avoid ad hoc procurements that can create data-governance gaps.