I don't think you're taking this thread seriously enough to respond in detail.
A university can be tiny, or it can have thousands of researchers. Some of them might want to work on small models, and others on huge frontier models. Multiple groups training their own models at the same time. Combined with the storage, networking, power, and redundancy, you basically need large data center scale. And at that point you're basically throwing a lot of capital trying to compete with the hyperscalers; you might be able to serve a small number of researchers very well, but most of the consumers would end up unhappy.