From the blog "Featured News"

As the new year begins, we have some exciting news to share. The migration of Second Life to the cloud is now complete! All the interconnected services and databases that collectively provide you with Second Life have been migrated to Amazon’s cloud servers. The "uplift" to the cloud will help bring better simulator performance and also improves our ability to diagnose problems and scale our systems for future growth and improvements.  Here’s a peek at the former cage in our colocation