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Outbyte PC Repair FREERepair Windows errors before they cause bigger problemsFix Now →Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →A data center is a facility that houses servers, storage, networking equipment and the systems that power and cool them. These facilities range from rooms run by a single organization to large cloud campuses, and they are expanding as demand for cloud services and artificial intelligence grows.
What is a data center?
The International Energy Agency defines data centers as facilities that house servers, storage systems, networking equipment and related components installed in racks and arranged in rows. In practical terms, they are the physical infrastructure behind services that process, store and move digital information.
Servers do the computing and storage work. Networking equipment connects servers to one another and to other systems. Electrical and cooling infrastructure keeps that IT equipment operating. The facility is therefore more than a building full of computers: its power, airflow, cooling and equipment design must work together. The U.S. Department of Energy’s data-center design guide treats these as connected design decisions.
How does a data center work?
Servers process and store information
Applications and services run on servers, which handle tasks such as processing requests and storing data. The workload determines what kind of computing equipment is needed and how intensively it is used.
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Networks move data
Networking equipment links the servers and storage systems, and connects the facility to other networks. This lets data move between machines and to the people or services using them.
Power systems keep equipment running
Facilities may draw electricity from the local utility and use switchgear, power-distribution equipment, uninterruptible power supplies (UPSs) and backup generators. The exact arrangement depends on the site, workload and reliability requirements.
Cooling removes equipment heat
Computing equipment produces heat, so cooling systems move it away from servers and other IT equipment. One airflow approach described by DOE separates cool supply air from warm exhaust using cold aisles and hot aisles. It can support higher equipment densities, but it is not a universal layout; design choices depend on conditions and the equipment being used.
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What kinds of data centers are there?
Data centers are often described by who operates them, what services they provide or the workloads they run. These categories are useful, but they do not form a strict scale from small to large.
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| Type | Typical ownership or service model | Common emphasis |
|---|---|---|
| Enterprise | Operated by one organization | Supports that organization’s systems and workloads |
| Colocation | Leases space, power and cooling to multiple customers | Customers place their own equipment in a shared facility |
| High-performance computing (HPC) | Defined by its workload rather than a single ownership model | Runs computationally intensive work, often at high utilization |
| Hyperscale | Typically owned by large technology companies, cloud providers or telecommunications organizations | Supports large-scale computing and digital services |
The U.S. Department of Energy’s Data Center Accelerator Toolkit describes data-center efficiency practices, while its hyperscale data-center overview covers that particular model. “Hyperscale” does not mean every data center, nor does the label alone establish a facility’s exact size or power use.
Why are data centers getting bigger in scope?
More computing is needed to provide cloud and other digital services, and artificial intelligence is adding to that demand. The IEA reported in its 2026 analysis that global data-center electricity demand grew 17% in 2025; electricity consumption from AI-focused data centers grew 50% over that year. These are growth figures for 2025, not forecasts.
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Investment also reflects the expansion. The IEA reported that capital expenditure by the largest technology companies exceeded USD 400 billion in 2025 and was expected to rise by a further 75% in 2026. The 2026 figure is an expectation reported in 2026, not a final audited result. Growth in computing capacity does not translate into identical growth at every facility: efficiency, the kinds of tasks being run and the pace of adoption all affect future demand.
What does data-center growth mean for electricity?
The power used by a data center includes both IT equipment and the infrastructure supporting it. The IEA says servers account for around 60% of electricity demand on average in modern data centers, with substantial variation by facility type. The remaining demand includes systems such as cooling and power infrastructure.
In the United States, data centers used 4.4% of total electricity in 2023, according to the U.S. Department of Energy, citing the 2024 United States Data Center Energy Usage Report. That report projects a range of 6.7% to 12% of U.S. electricity use in 2028. This is a projection, not a measured 2028 outcome, and it should not be read as a global estimate.
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Electricity planning is difficult partly because facilities can be built and brought online faster than some of the infrastructure needed to supply them. The IEA says a data center can become operational in two to three years, while broader energy infrastructure can take longer to plan and build. Where and how quickly a facility can expand therefore depends not only on land and equipment, but also on available power and local infrastructure.
For its U.S. figures and the cited projection, see the Department of Energy’s Geothermal and Data Centers page. For the IEA’s global energy figures and discussion of AI, see Key Questions on Energy and AI.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What to consider when comparing data centers
A facility’s label alone does not reveal whether it is appropriate for a particular workload or how it will affect local energy demand. Useful comparison points include:
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errors- Ownership and service model: whether one organization runs the facility, multiple customers lease space, or a provider operates large-scale cloud services.
- Workload and power density: the kind of computing performed and how much equipment or power is concentrated in a given area.
- Availability and redundancy: what backup power and system redundancy the workload requires.
- Local electricity and cooling context: the power supply, climate and cooling approach available at the site.
DOE’s design guidance emphasizes that IT systems, airflow, cooling and electrical choices are interdependent. A design that fits one workload or location may not suit another.
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