You have likely seen more discussion lately about data centers, especially as new facilities are proposed around the country. But what exactly is a data center?

Simply put, a data center is a secure building that houses computer servers and networking equipment. These systems store data, run applications, support websites, and help deliver many online services we use every day. Whether you're checking email, streaming a movie, shopping online, or accessing farm management software, chances are a data center is helping make it happen. 

Not All Data Centers Are the Same 

One common misconception is that all data centers do the same thing. In reality, they come in many shapes and sizes. 

Some smaller data centers serve as colocation facilities, where businesses rent space for their own equipment. These centers often focus on data backup, cloud storage, disaster recovery, and keeping local business systems running reliably. These smaller, low-compute facilities generally support routine business operations such as cloud file storage, email, websites, and business applications. 

Other facilities are much larger and are designed for high-compute workloads.   

What Does "Hyperscale" Mean? 

You may have also heard the term “hyperscale data center.” These large facilities handle massive amounts of processing power and are often used for workloads that include things like scientific research and artificial intelligence (AI) applications. AI systems, for example, require significantly more computing power than traditional business applications, which is why some newer data centers are larger and use more electricity.  

Understanding Water Usage 

Another topic that often raises questions is water consumption. Some data centers use water-based cooling systems to keep server equipment from overheating. However, many modern facilities use more efficient cooling technologies. One example is a closed-loop water system, which repeatedly circulates the same water through cooling equipment instead of constantly drawing new water supplies. This helps reduce overall water consumption and can lessen the impact on local resources. 

Additionally, cooling technologies vary widely. Some data centers use minimal water, while others rely more heavily on air cooling or other advanced methods. There is no single design that applies to every facility. 

As technology continues to evolve, data centers will play an increasingly important role in supporting communication, business operations, healthcare, education, agriculture, and emerging AI services.