Glossary: D

Information Technologies

What Is a Data Center?

data center is a specialized physical facility or complex that houses computing infrastructure—including servers, storage systems, networks, and other IT equipment—used by organizations to process, store, manage, and disseminate large volumes of digital data and applications. These facilities are foundational to the operation of websites, cloud services, enterprise IT systems, and mission-critical business operations.

Core components of a typical data center include:

  • Servers for hosting applications and processing data.

  • Storage systems for saving and managing information.

  • Networking equipment like routers, switches, and firewalls for secure data transfer.

  • Environmental controls (cooling, power supply, fire suppression) to ensure operational reliability and system longevity.

  • Security measures (physical and digital) for safeguarding against unauthorized access and threats.

Modern data centers have evolved from single, on-premises rooms dedicated to IT hardware to complex, distributed environments. Today, they support traditional enterprise workloads as well as cloud-native applications across on-premises, colocation, edge, and hyperscale (cloud provider) formats. Innovations like virtualization, multi-cloud strategies, AI workloads, and energy-efficient design have transformed data center architectures for scalability, security, and sustainability.

Data centers play a critical role in ensuring business continuity, delivering essential online services, securing sensitive information, and enabling robust digital transformation. As global data usage grows, next-generation data centers are designed for greater efficiency, resiliency, and compliance with evolving industry standards and data regulations.

Key types of data centers:

  • Onsite data centers (enterprise-owned and operated).

  • Colocation facilities (shared or leased spaces in third-party sites).

  • Hyperscale data centers (operated by cloud providers, supporting massive workloads).

  • Edge data centers (distributed locations closer to end users for lower latency).

Data centers are a backbone of the digital economy, powering everything from e-commerce and artificial intelligence to IoT and financial services.

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