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A Comparison of the Different Types of Data Centers

August 14th, 2024 | 4 min. read

By Jordan Pioth

Data center equipment

If your organization is looking to migrate network infrastructure and data to a data center to improve network performance and security while increasing the amount of storage, it is important to understand the different types of data centers to determine which is best for your organization.

No organization can afford to experience poor network performance and security. Poor performance can lead to network downtime halting business operations while poor security can lead to network vulnerabilities that result in cyberattacks and data breaches.

These events often lead to detrimental consequences including lost business as well as potential legal ramifications when industry regulations are violated.

Understanding what a data center is and the different types can help determine which data center will benefit the performance and security of your organization to improve business operations.

Coeo understands how important reliable network performance and security are and has helped thousands of organizations migrate to our data centers to improve network performance and security and better store data.

By the end of this article, you will understand what a data center is, the differences between the various types, and which type of data center is the better choice for your organization.

What is a data center?

A data center is a physical location that organizations use to house their data, critical applications, and network infrastructure.

Computing resources such as servers, data storage systems, and networking equipment are housed in a data center to support an organization’s business applications and network services.

Though there is not as much physical hardware required in today’s data centers thanks to virtual networks that support applications and workloads in a multi-cloud environment any hardware involved in the network infrastructure may also be included in the data center.

Data centers improve network performance and security to ensure the continuity, reliability, and security of an organization’s network, data, and applications.

The different types of data centers

While a data center may be the best choice to improve network performance and security and store data and network infrastructure, it is also important to understand the different types of data centers to determine which is most appropriate for your organization.

The different types of data centers include:

Enterprise data centers

Enterprise data centers are data centers that are owned and operated by a single organization for their exclusive use.

An enterprise data center enables you to personalize it to your organization’s needs and implement whatever infrastructure is needed without having to worry about sharing the space and technology with other organizations.

Colocation data centers

Unlike an enterprise data center, a colocation data center shares the space, power, cooling, and building security with multiple organizations.

Colocation data centers typically house the data and network infrastructure of multiple different organizations in the same location.

Cloud data center

A cloud data center is a data center operated by a cloud service provider to deliver scalable cloud computing services. Since the data center is provided by the cloud service provider, organizations typically do not manage their infrastructure.

However, some cloud providers like Coeo allow organizations to co-manage their infrastructure if they prefer to provide more personalized infrastructure to meet their business needs.

Large-scale data centers

A large-scale data center is a data center that can house and support massive amounts of data and technology. Large-scale data centers are typically used by major technology companies that hold massive data volumes and applications.

Edge data centers

Edge data centers are smaller facilities that are located near the end-users to reduce latency and provide real-time processing. This is beneficial for organizations that need fast, reliable data in real-time.

Micro data centers

Micro data centers are small, compact data facilities that are smaller than edge data centers and can be deployed in remote locations.

These types of data centers can be deployed in an organization's office so that they can manage and personalize their data center to meet their needs.

If you would like to speak with our team to learn more about the different types of data centers or ask any questions you may have you can schedule an appointment.TALK TO AN EXPERT

Which type of data center is the best choice for your organization?

Now you understand what a data center is and the different types that can be utilized. However, it is also important to understand which type of data center is the best choice for your organization.

If your organization has the capital to purchase a data center solely to use without sharing the space with other organizations, an enterprise data center may be the best choice.

However, if your organization only needs a portion of a data center and is fine sharing it with other organizations, a colocation data center may be the right fit.

A cloud data center may be the best choice for your organization if you are looking to use cloud technology and want your infrastructure to be managed by a cloud provider. This is a good choice for organizations that do not have internal IT expertise.

If your organization is a technology company that manages massive amounts of data and network infrastructure, a large-scale data center may be the best choice to incorporate your entire infrastructure and technology.

Alternatively, an edge data center may be the right fit for your organization if you are looking for a small facility close to your remote office locations to provide real-time processing for fast network speeds. This may be appropriate for hospitals and other healthcare-related organizations.

Finally, if your organization has a small network infrastructure that does not require much hardware, a micro data center can be installed at your remote location if physical space is available.

Determining which data center is the right fit for your organization

Now you understand what a data center is, what the different types of data centers are, and which data center is the right fit for your organization. This will enable you to determine which data center will best meet your needs.

No organization wants to experience poor data storage, network performance, or security issues. These issues can result in a lack of productivity and efficiency and lead to cyberattacks and data breaches that can cause detrimental consequences.

Using a data center to store data and network infrastructure can help you avoid these challenges. Understanding the different types of data centers will enable you to determine which data center is the best choice for your organization.

Coeo understands how important reliable network infrastructure and data storage are and has helped thousands of organizations migrate their infrastructure to our data centers to help improve network performance and security.

If you would like to speak with our team to learn more about the different types of data centers or ask any questions you may have you can schedule an appointment.TALK TO AN EXPERT

Now that you understand what the different types of data centers are and which one is the best choice for your organization, read this article to learn about the potential challenges with data center migrations and how you can avoid them:

Jordan Pioth

When he's not creating content for Coeo, Jordan loves to watch sports, hang out with friends and family, and anything sneaker-related.