Data center
Data center
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Data center

A data center is a building, a dedicated space within a building, or a group of buildings used to house computer systems and associated components, such as telecommunications and storage systems.

Since IT operations are crucial for business continuity, it generally includes redundant or backup components and infrastructure for power supply, data communication connections, environmental controls (e.g., air conditioning, fire suppression), and various security devices. A large data center is an industrial-scale operation using as much electricity as a medium town. Estimated global data center electricity consumption in 2022 was 240–340 TWh, or roughly 1–1.3% of global electricity demand. This excludes energy used for cryptocurrency mining, which was estimated to be around 110 TWh in 2022, or another 0.4% of global electricity demand. The IEA projects that data center electric use could double between 2022 and 2026. High demand for electricity from data centers, including by cryptomining and artificial intelligence, has also increased strain on local electric grids and increased electricity prices in some markets.

Data centers can vary widely in terms of size, power requirements, redundancy, and overall structure. Four common categories used to segment types of data centers are onsite data centers, colocation facilities, hyperscale data centers, and edge data centers. In particular, colocation centers often host private peering connections between their customers, internet transit providers, cloud providers, meet-me rooms for connecting customers together Internet exchange points, and landing points and terminal equipment for fiber optic submarine communication cables, connecting the internet.

Data centers have their roots in the huge computer rooms of the 1940s, typified by ENIAC, one of the earliest examples of a data center. Early computer systems, complex to operate and maintain, required a special environment in which to operate. Many cables were necessary to connect all the components, and methods to accommodate and organize these were devised such as standard racks to mount equipment, raised floors, and cable trays (installed overhead or under the elevated floor). A single mainframe required a great deal of power and had to be cooled to avoid overheating. Security became important – computers were expensive, and were often used for military purposes. Basic design guidelines for controlling access to the computer room were therefore devised.

During the microcomputer industry boom of the 1980s, users started to deploy computers everywhere, in many cases with little or no care about operating requirements. However, as information technology (IT) operations started to grow in complexity, organizations grew aware of the need to control IT resources. The availability of inexpensive networking equipment, coupled with new standards for the network structured cabling, made it possible to use a hierarchical design that put the servers in a specific room inside the company. The use of the term data center, as applied to specially designed computer rooms, started to gain popular recognition about this time.

A boom of data centers came during the dot-com bubble of 1997–2000. Companies needed fast Internet connectivity and non-stop operation to deploy systems and to establish a presence on the Internet. Installing such equipment was not viable for many smaller companies. Many companies started building very large facilities, called internet data centers (IDCs), which provide enhanced capabilities, such as crossover backup: "If a Bell Atlantic line is cut, we can transfer them to ... to minimize the time of outage."

The term cloud data centers (CDCs) has been used. Increasingly, the division of these terms has almost disappeared and they are being integrated into the term data center.

The global data center market saw steady growth in the 2010s, with a notable acceleration in the latter half of the decade. According to Gartner, worldwide data center infrastructure spending reached $200 billion in 2021, representing a 6% increase from 2020 despite the economic challenges posed by the COVID-19 pandemic.

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