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Who Operates Data Centers?

Published in Data Center Operations 3 mins read

Data centers are typically operated by big companies for their internal needs or by co-location companies that lease space and services to others.

Based on insights from industry sources, the operation of data centers falls primarily into two main categories:

1. Big Companies Operating for Internal Use

Many large organizations choose to own and operate their data centers to support their own specific business needs. These companies require significant computing power, storage, and network infrastructure to run their operations, host applications, or provide services to their customers.

Examples of such big companies include:

  • Cloud Vendors: Companies like AWS, Google Cloud, and Microsoft Azure operate massive data center networks to provide cloud computing services to clients globally.
  • Banks: Financial institutions require secure and reliable data centers to handle transactions, customer data, and internal systems.
  • Telecommunication Companies (Telcos): Telecom providers use data centers to manage network traffic, support communication services, and host various applications.

These companies operate data centers for their own purposes, managing everything from hardware maintenance and network connectivity to security and environmental controls like cooling.

2. Co-location Companies

Another significant type of data center operator is the co-location provider. These companies build and manage large-scale data center facilities and then lease out the space (often in racks, cages, or private suites) to multiple tenants.

In addition to providing the physical space, co-location companies typically offer essential services to their clients, such as:

  • Network Capacity and Power: They provide reliable power supply, backup generators, and robust network connectivity to ensure tenant equipment stays online and connected.
  • Cooling Equipment: Data centers generate significant heat, so co-location providers manage sophisticated cooling systems to keep down server temperatures and prevent overheating.
  • Physical Security: They offer high levels of physical security to protect tenant equipment.

Clients renting space in co-location facilities can then install and manage their own servers, storage, and networking hardware, leveraging the provider's infrastructure and operational expertise without building their own facility.

In summary, data center operations are handled by organizations ranging from tech giants serving a global customer base to specialized providers offering infrastructure services to various businesses.

Operator Type Primary Purpose Key Services Provided
Big Companies To support their own business operations and services Manage all aspects (space, power, network, cooling, security, hardware) for internal use
Co-location Firms To lease infrastructure space and services to clients Lease space, provide power, network connectivity, cooling, and physical security

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