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Quick Summary:
Data centers enable organizations to store and process critical data. Find out its definition and its value in this article.
Use this information to:
  • Understand the definition of data centers
  • Learn the purpose of data centers
  • Learn the purpose of data centers

At the heart of all IT systems lies the data center, a collection of hardware that makes available to businesses the computing and storage resources they require in order to power their operations and processes, such as online transactions and data storage.

Data center architecture is built on a network of computing and storage resources that allow for the delivery of shared data and applications. Routers, switches, storage systems, support infrastructure, and application-delivery controllers are the main components of data center design. The need for more servers and storage space increases as organizations and their demands increase, or as more data is produced.

Moreover, data centers are secured with multiple layers of physical and virtual security measures, such as access controls, surveillance systems, firewalls, and intrusion detection systems, to prevent unauthorized access, theft, or data breaches.

The purpose of data centers

As the world becomes increasingly connected and data-dependent, the need for powerful and scalable data centers is growing exponentially. With the right infrastructure in place, businesses can access their data instantly across a global network without any lag or interruption.

Data centers offer IT solutions that businesses and agencies need to operate, allowing businesses to process transactions and agencies like the government to provide mission-critical services.

Industries that rely on data centers include eCommerce, banking, government, telecommunication, and more. Increased demand for digital services from these organizations is driving the steady growth of data centers. Technavio forecast the global data center market to grow at a CAGR of 21.98% during the period 2021-2026.

The difference between on-site and remote data center

On-site and remote data centers both play an integral role in data storage and management. However, they differ in several significant ways.


On-site data centers are located within an organization's physical premises. This setup allows for easy access to data by the company's employees, which makes for quick decision-making and easy communication. Companies can customize their servers to meet specific needs, allowing for greater control over the management and security of sensitive information.


On the other hand, remote data centers are hosted by third-party providers and accessed through a virtual connection. Colocation or colo data centers lease space for a company’s IT hardware outside of their facility. The use of remote data centers eliminates the need for expensive physical infrastructure investments and maintenance costs. This results in lower operational costs for businesses.

When picking between data center types, organizations must consider is the accessibility and reliability of both options. With on-site data centers, access to information may be limited due to technical issues or power outages. Remote data centers have high levels of redundancy and multiple fail-safes in place to ensure data availability and prevent any disruptions.

In summary, on-site data centers are ideal for organizations that require high levels of data control and have the budget to manage the physical infrastructure. Remote data centers offer a cost-effective solution that can support a distributed workforce while providing access to reliable, secure, and scalable data management solutions. It's essential to weigh the advantages and disadvantages of each option and choose the one that best meets the specific needs of your organization.


A data center is an important part of how your company does business every day. It's where critical computing and storage take place, so it's important to have a data center solution that meets business needs.

It also helps to provide the backup power necessary to mitigate interruptions in your everyday operations. This is especially important during a time when power outages continue to spike due to different factors such as extreme weather and increased demand. Find ASCO Power solutions for data centers here.

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