What is a Data Center?
Data centers are buildings designed to house the computer servers and network equipment used for digital technology, including the training and deployment of AI. These centers store, process, and transmit the large amounts of data required to power this digital technology. They are essential in making sure that data is accessible, secure, and reliably delivered around the world. Data centers range from small facilities of a few square feet to massive complexes the size of Walmart Supercenters or larger, with new AI-focused centers being significantly more energy and water-intensive than traditional data centers.
Top Factors for Data Center Location
Data centers are a large investment for companies, and lots of planning goes into choosing where to house them. The reasons listed below are six of the top factors companies must consider when choosing a data center location1.
- Climate
- Cost of Power
- Energy Availability
- Land and Construction Cost
- Tax Incentives
- Natural Disaster
Cooler regions reduce the energy needed for cooling infrastructure, leading to cost savings and improved efficiency.
In the United States, Northern Virginia, Dallas, and Silicon Valley are the top data center markets as of 2024, due to a combination of these factors.
DATA: DataCenterMap
