Benefits of a Data Center Coming to Your Community

The Basics

A data center is a facility filled with large groups of networked computer equipment. Its role is to remotely store, process and distribute large amounts of data. Because data centers house vital computer equipment, they require supporting infrastructure such as dry/secure environments, cooling flexibility, robust power and fast communication.

Types of Data Centers

Data centers are categorized according to size and who is served. There are four main types.

  • An enterprise data center serves private corporations or government agencies. These types of data centers can be located on site, like in an office building, or offsite.  
  • An internet data center is utilized by telecom and internet service providers to house data for their customers.  
  • A colocation data center hosts multiple end users, and/or the equipment stored inside the building is leased to users, similar to an end user hotel.
  • Finally, a hyperscale data center is a scalable multi or single user facility. The difference between a colocation data center and a hyperscale is the size; a hyperscale data center is much larger and generally requires larger quantities of power.  
Data Centers on the Outside and In

While a data center sounds like it would be a very modern-looking facility, that isn’t the case!  The exterior of a data center looks very much like any other non-descript office or storage building. Often, there is landscaping or fencing surrounding the building, as privacy is very important to data center end users. There is typically much less traffic for a data center than for a standard warehouse along with high security fencing, gate systems and often garage shakes will surround the facility. In addition to the building itself, a data center will also have power conditioning equipment, power distribution equipment and generation equipment like an on-site substation and generators, batteries, as well as water and fuel storage onsite.  

The interior of a data center is filled with metal racks of computing equipment and cooling units to keep the racks operational. A data center rack is a steel and electronic framework designed to house servers, networking devices, cables and other data center computing equipment. The temperatures in the halls of a data center can swing between 65 degrees Fahrenheit and 105 degrees Fahrenheit in a short distance due to the heat the racks expel and the cooling equipment built to cool them.  Ultimately, the data the data center processes is much more interesting than the halls of the building itself!

Benefits to the Community

Short term benefits to a community include the thousands of skill trade jobs needed to build these large campuses. An average hyperscale data center construction project will employ between 1,000 to 1,500 construction workers at the peak of construction which could last 5-10 years. With this, economic activity in the community will raise sales in gas, retail, and food along with the other logistic efforts.  

Longer term benefits to a community are more expansive. An average data center could employ 30-50 professionals in high-paying careers like IT, operations and maintenance, and security. Furthermore, there are many related businesses that tend to develop near a data center, like office buildings, supply and support businesses, infrastructure and equipment partners, logistics companies, and other data centers which bring even more jobs. In addition to bringing new jobs to the community, hyperscale data centers generally offer training and education support to a locality. This includes STEM grants for schools vocational training for adults, fiber and Wi-Fi infrastructure for less serviced areas and more.  

Another added benefit that takes longer to see is the increased tax basis that a data center brings. Data centers often start as land that is not being actively utilized due to their large footprint. A data center could bring millions, and potentially tens of millions, of dollars in tax basis when including property, computing equipment, and income from new jobs. This provides more funds for public infrastructure, public education, emergency services, and more.  

Data centers tend to “cluster” once one lands in a community. Infrastructure and incentives that an end user attains often attracts others. This infrastructure comprises the fundamentals of a data center, like water, power, and fiber, all of which a data center uses in large amounts to maintain uptime for data storage and processing.  

Data centers have the power to bring massive benefits to a community that spans from economic to infrastructure benefits with a minimal noise, environmental, or societal impact. Data centers are great neighbors!  

We want to hear about your project!

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Diode Ventures®

11401 Lamar Avenue
Overland Park, KS 66211
United States of America

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