As we live more and more of our lives online and in the digital age, the exchange of information becomes increasingly necessary to keep businesses up and running. This digital exchange requires massive computing and networking equipment which is located in a centralized physical location known as a data center.

A data center is a special computer room that is home to the storage and Importance of data centres computing equipment of a business. The fundamental components of a data centre comprise servers that provide the power of processing to transform raw data into usable data and storage devices which hold the data on a robotic tape or hard-disk drives. Furthermore, a data centre relies on networking and communication equipment such as routers, switches and endless miles cables that aid in the transfer of information between servers.

In the 1990s, when IT operations increased and companies began to use inexpensive networking equipment to house their networking equipment in a central location and the term «data center’ was first used. Businesses can either construct their own data center on their premises or work with a third-party provider of data center services that provide managed and colocation services. Third-party solutions are typically more energy efficient and economical alternative to facilities on premises.

Many of these third-party options also offer more flexibility with respect to policy management. A data center, for example offers multiple policy environments from one location. This allows IT to manage data workloads by creating distinct policies that satisfy compliance requirements across geographies and organizations. This could reduce security risks and enhance the information governance.