Re: The insane thing about it is... (@garetht t)
A modest server hardly requires redundant A/C - but basically all the stuff in your list that actually matters in real life is quite readily achievable for even quite a small company with nothing more than a dedicated well ventilated IT room.
Redundant power - UPS capable of handling several hours of outage is easy to get and even a small petrol generator could easily be kept on hand in the unlikely case of an outage lasting any longer than that.
Redundant Internet connections - Easy. (And even a 3/4G last ditch option would be plenty for an Email server)
Low latency links to backbone... hardly necessary for the majority of companies, especially if the bulk of their IT is based on one site.
Physical security... really?
Audited and certified systems and procedures... whatever. In practice, plenty of companies get along much better with just a bit of personal responsibility and good old common sense. If your IT staff consists of a handful (or fewer) of reliable, competent individuals that work well together they'll make sure that nothing too stupid is likely to happen.
You can keep your cloud, it's just your data on a pile of other people's computers managed by fallible humans you can't speak to and the whole edifice waiting to fall over when any one of the billion or so sequences of events occurs that wasn't covered by the "certified procedures"