A data center is a facility used to house computer systems and associated components, such as telecommunications and storage systems.
Since IT operations are crucial for business continuity, a data center generally includes redundant or backup components and infrastructure for power supply, data communication connections, environmental controls (e.g., cooling, fire suppression), and various security devices. Data centers are the foundation of the digital infrastructure that powers the modern economy, aggregating collective computing demands for cloud services, video streaming, blockchain and crypto mining, machine learning, and virtual reality. Large data centers operate at an industrial scale, requiring significant energy. Estimated global data center electricity consumption in 2024 was around 415 terawatt hours (TWh), or about 1.5% of global electricity demand. The IEA projects that data center electricity consumption could double by 2030. High demand, driven by artificial intelligence (AI) and machine learning workloads is accelerating the deployment of high-performance servers, leading to greater power density and increased strain on electric grids.
