I don't get why you'd do this. This sounds like a false choice. If you want a company to deliver racks with hardware to you, plenty of companies do exactly this. You don't need cloud for that.

The choice is not between "do all hardware and building" and "cloud". There's a whole spectrum in between. In fact, it's quite hard to do the building. You can go colo (building + power + electrical done by vendor, optionally network), dedicated (servers done by vendor), hybrid hosting, hyperscaler (you get VMs), ...

As soon as you move above colo, you don't have the hardware issues mentioned here. Or, well, you do have issues, but you "just" file a ticket.