The physical layout of digital infrastructure affects the logical layout in multiple ways: the efficiency and scaling, the co-location of compute to large or sensitive data, the environmental footprint etc.
The eternal pendulum between "thin" and "fat" clients, or "on-premise" versus "cloud" are different aspects of that fundamental conundrum: how should chips be distributed physically?
The answer to that does not seem to be fixed and unique and there are complex feedback loops.
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