The investing community is abuzz about data centers, particularly as they relate to artificial intelligence (AI) and cloud computing. Get up to speed with this review of the role data centers play in the technology ecosystem and five ways you can invest in data center growth.
Understanding data centers
Data centers are physical facilities that house technology components. Those components include servers, storage systems, networking switches and routers, backup power sources, and controls to manage the facility's temperature and humidity. Together, this equipment supports data storage, data processing, network connectivity, and other technology functions.
Before the advent of cloud computing, data centers were privately owned and located in or near business operations. Known as on-premise data centers, these facilities were owned, maintained, and managed by organizations with computing needs. A small law office might have had servers in a closet, for example. A global enterprise, on the other hand, may have had entire floors occupied by mainframe computers and related equipment.
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