Why are data centers important?

As the volume of data generated worldwide continues to explode, data centers allow us to consolidate and optimize computing power in a more efficient and secure way than traditional decentralized IT systems.

The industry has rapidly evolved — from businesses operating their own small server rooms to the rise of large-scale cloud and hyperscale data centers that now handle the majority of global data traffic.

For example, in 2010, nearly 80% of data center activity took place in smaller, traditional facilities owned by individual companies.

By 2018, approximately 89% of all data center computing had shifted to larger, cloud-based operations, according to the U.S. Department of Energy.

As of August 2024, hyperscale cloud providers (such as AWS, Meta, Azure, and Google) control 41% of global data center capacity, surpassing traditional on-premises deployments (at 37%) and non-hyperscale colocation (22%).