Please compare apples to apples. If you are comparing to colo, I don't know of any colocation facilities which provide higher level services (say, Kinesis). They might provide some features like CDNs, but nothing very fancy.

You are left with a EC2 vs servers racked in some colocation facility comparison.

At that point, it's not even fair. I can run a terraform script and spin up a copy of the production environment in minutes. I don't have to create purchase orders and wait for hardware. I don't have to issue tickets. If any machine goes down it can be recovered in minutes, and it will spin up in another hypervisor, maybe even a different datacenter.

You don't have to spend time and resources with discussions on how the 'network topology' is going to look like, and then send people off to implement and wire up stuff.

You don't have to spend cycles diagnosing issues just to find out that there's a bad transceiver in a NIC somewhere. YOU DONT CARE. AWS cares and, even if they can't find an issue, stop/start, new hardware in minutes.

You cannot compare the two in good faith. Sure, it might make sense to host some workloads in a colo, but you are giving up a lot.