>Server rooms have shrunk not just because of the cloud, but because the same amount of work can get done with less machine.
The demand for servers and compute power has increased because of the cloud. Just because server rooms have turned into datacenters does not mean they "shrunk", quite the opposite.
When I started at my previous company we had a server room that was full of computers. When I left we had consolidated to a single rack, and nothing had been moved to the cloud. While the companies demand for compute power went up during the time I worked there, the compute power available in a single machine went up faster than the demand.
The demand for servers and compute power has increased because of the cloud. Just because server rooms have turned into datacenters does not mean they "shrunk", quite the opposite.