Importance of data centers

Written By Gregory Gilligan

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 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.

In 2010, nearly 80% of data center activity occurred in smaller, traditional facilities owned by individual companies.

By 2018, however, roughly 89% of all data center computing had transitioned 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%).

Additional Resources:

Featured
Why digital infrastructure matters? 
Why digital infrastructure matters? 

This Q&A highlights a key point often overlooked: data centers are just one part of the broader digital infrastructure ecosystem that gives Virginia communities and the state a competitive edge in economic development.

What is a data center?
What is a data center?

Data centers are mission-critical infrastructure, enabling our digital world to function and grow,

Importance of data centers
Importance of data centers

As global data generation surges, data centers offer a more efficient and secure way to manage computing than traditional decentralized systems.

Growth of data centers
Growth of data centers

Driven by the relentless growth of the digital economy, data centers have become critical infrastructure — powering everything from cloud computing to AI — and their presence continues to expand to meet rising demand.

Economic benefits
Economic benefits

Data centers generate major economic and community benefits for Virginia — supporting tens of thousands of jobs, driving billions in investment through construction, and contributing to local infrastructure, education, and nonprofit initiatives.

Gregory Gilligan
Previous

What is a data center?
Next

Growth of data centers