Location, location, location. The significance of where you build your data centers

Data centers are the backbone of our increasingly digital world, providing the infrastructure to store, process, and transmit vast amounts of information. While it may seem that data can be effortlessly transported through fiber optic cables regardless of location, the reality is that the geographical placement of data centers plays a crucial role in their effectiveness and overall value. In this article, we will explore the reasons why location matters for data centers, considering factors such as infrastructure stability, safety, latency, and legal considerations.

Petr Hrach, Chief Technical Officer of Altron Modular, explains these aspects, so we can gain insight into the strategic value and importance of data center locations.

Petr Hrach, CTO of Altron Modular

Latency

Latency refers to the time delay in data transmission, and for certain real-time applications, such as edge computing or IoT devices, low latency is essential to ensure smooth and responsive user experiences. Latency is a crucial factor, especially for edge applications.

Edge data centers are strategically positioned closer to the end-users or devices they serve, often at the edge of the network. By minimizing the physical distance between the data center and the end-user or device, latency can be significantly reduced. “This proximity enables faster processing, real-time analytics, and immediate response times, which are critical for applications that require quick decision-making or low latency interactions,” adds Petr.

For example, in autonomous vehicles or augmented reality applications, low latency is vital for ensuring the timely exchange of data and enabling real-time responses. Edge data centers help optimize latency by reducing the distance data has to travel, mitigating the effects of network congestion and latency associated with long-distance data transmission.

In summary, while latency may not be as critical for all data center applications, it becomes increasingly important for edge computing and other latency-sensitive use cases. Proximity to the end-users or devices helps minimize latency, enabling faster and more responsive data processing and enhancing the overall performance of edge applications.

Infrastructure Stability

One of the primary reasons why location matters for data centers is infrastructure stability. A reliable and robust infrastructure is essential for uninterrupted data operations. Data centers require a stable supply of electricity to power their servers and systems continuously. Therefore, locating data centers in areas with a reliable power grid and minimal risk of disruptions, such as blackouts or brownouts, is vital.

Furthermore, data centers also benefit from being located in areas with limited climate and tectonic disruptions. Extreme weather events, seismic activities, or geological instability can pose significant risks to data center operations. Therefore, regions with a lower risk of natural disasters are often favored for data center locations.

Safety and Cybersecurity

Data centers house massive amounts of sensitive information, making security a paramount concern. The location of a data center can influence its vulnerability to physical threats, such as theft, sabotage, or natural disasters. “By choosing a secure location with robust physical security measures, data center operators can mitigate these risks and safeguard the valuable data stored within their facilities,” explains Petr.

Additionally, cybersecurity is a critical aspect of data center operations. While physical security focuses on protecting the infrastructure, cybersecurity safeguards the data itself from unauthorized access, data breaches, and cyber-attacks. The location of a data center can influence its proximity to cybersecurity experts, government agencies, and legal frameworks that promote strong data protection and cybersecurity practices.

Latency

Although data can be transmitted rapidly through fiber optic cables, latency can still be a concern, particularly for certain applications. Latency refers to the time delay between the sending and receiving of data, and it can impact real-time services such as online gaming, financial transactions, or video conferencing. By locating data centers closer to end-users or network access points, latency can be reduced, ensuring faster and more responsive data transmission.

Host Location Incentives

On the flip side, why would any location want to host a data center? Hosting a data center can bring significant economic benefits to a region. “Data centers require a skilled workforce for their operation and maintenance, which can stimulate job creation and economic growth. Additionally, the presence of data centers can attract other technology companies and foster an ecosystem of innovation and technological advancement,” explains Ondrej Horak, product manager of Altron Modular.

Furthermore, hosting a data center can enhance a region’s reputation as a technology hub, attracting investment and positioning it as a desirable location for businesses. Local governments often provide incentives, such as tax breaks or infrastructure development, to attract data centers, further boosting the attractiveness of a specific location.

Legal and Regulatory Considerations

When deciding on the location for critical workloads, legal and regulatory factors become significant considerations. Data protection laws, privacy regulations, and governmental surveillance practices can vary between countries. Therefore, companies must ensure that the hosting location aligns with their legal and compliance requirements. This includes considerations such as data sovereignty, cross-border data transfers, and adherence to industry-specific regulations.

Conclusion

The location of data centers is far from arbitrary; it plays a vital role in their effectiveness, security, and overall value. Infrastructure stability, safety, latency optimization, and legal considerations all contribute to the strategic importance of data center locations. By carefully selecting the right location, data center operators can ensure reliable operations, minimize risks, and provide optimal services to their clients. Simultaneously, hosting a data center can bring economic benefits and enhance a region’s technological standing. The relationship between data centers and their locations is a complex interplay of various factors, highlighting the importance of careful planning and consideration in this critical field.