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Ok, now do your own datacenter vs cloud.
Huh? What is there to do? Datacenter, cloud computing?
And what term might be used to describe the location of the datacenter down the hall, that is not used to describe the one across the country? It’s pretty standard in IT, but also used outside of IT by normal people for things such as describing a pub.
If the thing is not runing on a user computer, it's not local. If a datacenter is down the hall it's still a remote machine. It's always remote, unless the user is physicaly in a datacenter and using the server directly.
This whole argument is proof enough that the original language is confusing. For your argument to make sense we need to assume that local is used as a non-IT term and cloud as an IT term in the same sentence. That is very confusing language no matter how you look at.