The Impact Of Data Centers On IT Innovation

Public cloud services offer many benefits to businesses of all sizes. Even so, they are not always the right solution for all businesses all of the time. There are still numerous benefits to using data centers, particularly for businesses that need to innovate. With that in mind, here is a guide to how data centers promote IT innovation.

What is a data center?

At a high level, a data center is a facility used to store, process, and/or transmit data. Practically, a data center can be anything from a cupboard with basic IT equipment to a purpose-built facility in a strategic location covering many thousands of square feet.

The development of data centers

In the early days of IT, most data centers were small enough to be housed in the same buildings as their users. These small-scale data centers were often known as “server rooms”.

As the volume of digital data produced by businesses increased, however, so too did the size of the facilities used to house the IT equipment that handled it. This led to the creation of the vast hyperscale data centers used today by major enterprises such as cloud service providers (CSPs).

There are, however, relatively few locations that can support these huge data centers. This means that data often has to travel long distances to reach them. It may also have to travel the same distance back. This has led to a resurgence in smaller data centers, located closer to where data is generated and/or used.

In fact, the emphasis on ultra-fast data processing has led to a resurgence of small-scale data centers located closer to users. The very smallest of these can be right on the edge of the network in regular buildings. These deployments are known as Edge computing deployments. They are, however, very similar to the server rooms of old.

How can businesses access data centers?

Businesses can still choose to build/buy and run their own data centers for their own use. These days, however, relatively few businesses do. Moreover, those that do tend to be in the technology sector (for example, CSPs).

It’s now far more common for businesses to access data centers by means of colocation arrangements. Colocation arrangements enable businesses to lease or rent space in a data center facility that’s run by a third-party vendor.

They use this space to house their own IT equipment which they manage themselves. The vendor, meanwhile, takes care of the facility itself and all the relevant infrastructure (e.g. power, cooling and networking).

Colocation arrangements therefore make it possible for businesses to have the benefits of data centers without the commitment of owning and running them.

How data centers promote IT innovation

Here are five ways having access to colocation data centers promotes IT innovation.

Scalable infrastructure for rapid growth

Colocation data centers provide scalable infrastructure that allows startups and IT companies to expand their server capacity in line with business needs. Instead of making large capital investments in building and maintaining their own data centers, companies can scale quickly, adding more resources as needed.

This ability supports rapid innovation in areas like artificial intelligence, big data, and machine learning, where growing workloads and fluctuating demands require quick adaptation without the constraints of physical space or power.

Reduced latency for real-time applications

Colocation centers are strategically located near major internet exchanges, reducing latency and enhancing the performance of real-time applications. This proximity is crucial for companies working with technologies like AI, machine learning, and high-frequency trading, where data processing and decision-making need to occur in real-time.

By minimizing latency, colocation enables businesses to run these applications efficiently, fostering innovation in technologies that rely on fast, high-volume data exchange.

Cost-effective redundancy and failover systems

Colocation centers offer businesses access to robust redundancy and failover systems, including backup power, cooling, and multiple network connections. These services ensure high availability and minimize downtime, without the high costs of building these systems in-house.

Startups can focus on developing new products and technologies, knowing their infrastructure is reliable and will remain operational, even during unexpected disruptions.

Access to advanced security measures

Colocation centers provide high levels of physical and digital security, including biometric access controls, surveillance, and compliance with industry standards like HIPAA and PCI-DSS. This allows businesses to innovate securely, especially those in highly regulated industries like finance or healthcare. Enhanced security helps companies focus on developing new applications without compromising sensitive data.

Hybrid cloud flexibility

Colocation centers enable the integration of on-premises hardware with public or private cloud services, creating a hybrid cloud environment. This flexibility allows businesses to innovate while optimizing costs, handling diverse workloads, and managing both legacy systems and modern cloud-based applications seamlessly.