I work in gamedev. Build servers, version control, etc. are almost always on-premise, even if a lot of other stuff has been transitioned to the cloud. There's a few reasons:
1) Bandwidth. I routinely saturate my plebian developer gigabit NIC links for half an hour, an hour, longer - and the servers slurp down even worse. In an AAA studio I am but one of hundreds of such workers. Getting a general purpouse internet connection that handles that kind of bandwidth to your heavily customized office is often just not really possible. If you're lucky your office is at least in the same metro area as a relevant datacenter. If you're really lucky you can maybe build a custom fiber or microwave link without prohibative cost. But with those kinds of geographical limitations, you're not so much relying on the general internet, so much as you're expanding your LAN to include a specific datacenter / zone of "the cloud" at that point.
2) Security. These servers are often completely disconnected from the internet, on a completely separate network, to help isolate them and reducing data exfiltration when some idiot installs malware-laden warez, despite clear corporate policy threatening to fire you if you so much as even think about installing bootleg software. Exceptions - where the servers do have internet access - are often recent, regrettable, and being reconsidered - because of, or perhaps despite, draconian whitelisting policies and other attempts at implementing defense in depth.
3) Customizability. Gamedev means devkits with strict NDAs and physical security requirements, and a motley assortment of phone hardware, that you want accessible to your build servers for automatic unit/integration testing. Oddball OS/driver/hardware may also be useful for such testing. Sure, if you can track down the right parties, you might be able to have your lawyers convince their lawyers to let you move said hardware into a datacenter, expand the IP whitelists, etc... but at that point all you've really done is made it harder to borrow a specific popular-but-discontinued phone model from the build farm for local debugging when it's the only one reproducing a specific crash when you want to debug and lack proper remote debug tooling.
...there are some inroads on the phone farms (AWS Device Farm, Xamarin Test Cloud) but I'm unaware of farms varied desktop hardware or devkits. Maybe they exist and just need better marketing?
I have some surplus "old" server hardware from one such gamedev job. Multiple 8gbit links on all of them. The "new" replacement hardware often still noticably bottlenecked for many operations.