Data Centers for Digital Economy

The world has relied entirely on digital services over the last few years, which have transformed an economy towards the digital economy. And this digital economy is changing businesses across industries, speeding up fundamental rapid changes and their models of activity. While digital technologies have also changed the way businesses interact with their prospective customers, it means that they are continually using more data to accelerate business processes.Data Centers for Digital Economy.

Since the world is connected via the sophisticated network infrastructure, data transmission with real-time connections is becoming easier. And as more data is transferred, a robust infrastructure is required to handle the workloads. Thus, companies need to invest in Information and Communications Technology (ICT), particularly in data centers and network capabilities, to leverage the power of digital transformation.

Businesses can store and process their data at large by investing in data centers. Such data centers ensure that their supply chain is running smoothly by providing steadiness. It also provides access to physical servers and data, rendering data centers a critical asset to the digital economy.

The data center space has grown to be of great economic significance to any industry. Considering estimates, the global data center market is expected to hit over US$ 174 billion by 2023, as multi-cloud services are increasingly growing.

Why are the Modern Data Centers needed for Digital Economy?

A data center is a facility that stores servers, data, and all the IT infrastructures required to maintain secure and reliable operations. Companies, organizations, or any entity that produces and leverages data will invest in data centers.

Due to their interconnectivity, many organizations use data centers that can serve to allow quick data transmission over long distances between data centers. This interconnectivity enables greater consumer accessibility and also paves the way for more data center locations and increased power loss tolerance to the network.

Today, data center operators are becoming aware of the value it provides to customers and is gradually replacing the conventional 3-tier network with 2-tier leaf-spine architecture to facilitate faster data flow. Leaf-spine is a topology of the two-layer data center network that allows speedier data movement through physical network links. Thus, following leaf-spine architecture will dramatically increase the number of fibers needed to serve interconnection on the data center campus.

A data center is, therefore, a vital asset for the digital economy, as everyday operations of businesses need to rely heavily on their data centers in today’s digitized world to store, communicate, and transfer data without delay. So companies need to address considerations such as energy usage, performance, and protection that can hold confidential data to create a data center.


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