Server huggers are people who won’t give up there own private servers, even when a more centralized model makes more sense. They may be department level people who won’t move to the corporate data centre. Or data centre people who won’t move to the Google Cloud.
The fact that we have a derogatory term like server hugger tells me something is going on here. Back in the client/server days, those departmental types would have been called leading edge, now they’re legacy holdouts.
Note also that server hugger means a whole different thing at Hooters.