As the world’s tech and social media giants move to cloud technology, you will be hearing the term “data center” a lot.

From Google, to Facebook, to Microsoft, perhaps every top-tier tech company needs the support of data centers. In the context of modern day technology, it is safe to say that it would be impossible for a tech firm to function without them. So, what exactly are they, and why are they so important?

What Is a Data Center?

A data center is basically a huge computer that stores and processes information. Any company or organization that handles its users’ data must need data centers. In other words, if you have an account on any website, or if you have used the internet to search for anything at all, you are definitely taking up some space in a data center located in some corner of the world.

Data centers are typically referred to as a singular entity, but they are actually made up of racks, cabinets, cables, batteries, and backup generators in case of a power breakdown. Because they store up to billions of megawatts of information, they also have cooling systems to keep them from overheating.

So, just think of data centers as supercomputers that store all your online information for you, and millions of people all around the world.

How Did Data Centers Come About?

The biggest data center in the world is located in the US

Even though data centers are all the buzz nowadays, these physical facilities are not new inventions from the twenty first century.

It is commonly believed that the first facility that could be considered a “data center” was built in 1946 in the US. It was called the ENIAC (Electronic Numerical Integrator and Computer), and it was used by the US military to store defence codes and other critical information. The ENIAC was huge---it was 1,800 square feet, and weighed up to 30 tons.

In the 1960s to 70s when commercial computers began to gain popularity, large-sized computers similar to ENIAC started to appear in the market. Veteran IT company IBM was at the forefront of such infrastructure at the time. In 1964, CDC (Control Data Corporation) unveiled the world’s first “supercomputer” called the CDC 6600. In hindsight, the supercomputer had all the features of a data center.

But it wasn’t until the 1990s when the term “data center” was coined. With the internet quickly taking the world by storm, IT companies at the time saw the need to move their servers into dedicated computer rooms.

Where Are Data Centers Located?

The world's biggest data center is located in the US

Data centers are everywhere all around the world, but most, if not all of them are located in areas free of natural disasters. Many are also near a stable and reliable source of electricity, so that it guarantees better internet connectivity. Proximity is also another important aspect: the closer a data center is to a business, the faster the business’ overall internet speed will be.

When expanding overseas, data center companies also consider a country’s tax laws, cost of water and electricity, and geopolitical risks to be important factors.

As data centers become bigger in storage capacity, many companies have also begun considering security as one of their top concerns. The availability of on-site security, such as surveillance cameras and security personnel, and software security for every single component are now mostly in place 24/7.

There are over 6,000 data centers in about 126 countries globally, most of which are in the US.

The biggest data center in the US, which is also the biggest in the world, is currently a 7.2 million square feet data center campus called The Citadel. It is located in in Tahoe Reno, Nevada, and hosts the data of some of the most important names in business, including eBay, Amazon, HP, Boeing, and Bloomberg.

Who Are the Some of the World’s Biggest Data Center Providers?

Data center

First, when it comes to building data centers, there are three main types.

The first is enterprise data centers. These are facilities that are owned and operated by tech companies themselves. For example, Google, Microsoft, and IBM have enterprise data centers in many parts of the world.

Next is the colocation data center. It is when a company rents a few racks of spaces from a data center company. Mega tech companies such as Facebook also have colocation data centers in addition to their enterprise ones.

With cloud technology becoming increasingly important in the world of tech, cloud data centers are also becoming more popular. Tech companies that have businesses dedicated to cloud computing typically also operate cloud data centers. Amazon Web Services (AWS) and Microsoft Azure are two examples.

Now that we know the different types of data centers, who are the world’s main data center providers?

Aside from the big names in tech that we are all familiar with, a few that you should know are NextDC, SpaceDC, Equinix, and Digital Realty. The former two are headquartered in Australia and Singapore respectively, whereas the latter two are founded in the US.

Why Are Data Centers Important?

Data centers are vital to a tech company's operations

Data centers are important because, well, everyone uses data.

From individual users like you and I to multinational corporations, it is perhaps safe to say that everyone has probably used the services provided by data centers at some point of their lives.

Related: Where Does Internet Come From? Why Can't You Make Your Own?

Whether it’s sending an email, shopping online, playing video games, or just casually browsing social media, every single byte of what you save online is stored in a data center. With remote work quickly becoming the new normal, there is an even greater need for data centers.

For medium and large enterprises, cloud data centers are fast becoming the preferred mode of data storage. This is because they are far more secure than storing information with traditional hardware devices. Cloud data centers offer enhanced security protection such as firewalls, and backup components in case of a security breach.

Data Centers Are the Backbone of Modern Technology

Data centers are the lifeline that keeps our digitalized world going. So next time you hear that a new data center is under construction near you, be excited, because that means our world has just become a little more connected.