As we spend more time online, the exchange and sharing of digital information is data room benefits becoming more vital to keep businesses running. Digital exchanges require massive computing and networking equipment that resides in a central physical space called a data centre.

A data center is an specialist computer room that contains the computing and storage equipment for a company. The essential components of a data centre include servers, that house the power to process raw data into useful information, and storage devices that hold this information on hard-disk drives or robotic tape. A data center also relies on communication and networking equipment such as routers, switches and miles of cables to aid in the flow of information between servers.

The term “data center” was first used in the late 1990s when IT operations grew and cheap networking equipment enabled companies to house all their networking equipment within a centralized space. Businesses can build their own data center on their own premises or work with a third-party provider of data center services that offer managed and colocation services. Third-party solutions are typically more efficient in terms of energy and cost. They are also a cheaper alternative to on-premises facilities.

A lot of these third-party options also provide greater flexibility around policy management. For instance, a data center can provide multiple policy environments in a single location and allow IT to limit data workloads with specific policies that meet compliance demands across geographies and business units. This can help reduce security risks and enhance information governance.