What types of data centers are there and which is best for your business?

What is a data center, and why are they so central to business operations? Enterprises of all sizes and industries rely on IT infrastructures to store and manage applications, resources and data. This makes these facilities crucial to business operations.

Explore what types of data center are available for businesses, their core components, and what functions they perform in an enterprise IT environment. We also cover the main challenges faced by these systems and key solutions to safeguard and optimize your IT operations.

What Is a Data Center?

A data center is a facility that houses an enterprise’s IT systems in a highly controlled environment.

These infrastructures primarily include servers, storage devices and network equipment. A data center facility aims to are to guarantee maximum system security and performance while executing its technical functions.

These centers typically operate 24 hours a day without interruption. A team of skilled professionals is responsible for monitoring and maintaining the centers. This ensures that they operate smoothly and efficiently.

Why are data centers important to business?

A robust infrastructure is essential to a business’s performance and data security.

This is largely because they are responsible for storing and processing critical data. They

• Ensure that this data is readily available for the appropriate personnel
• Keep the information safe from unauthorized access and theft

Data center infrastructures also allow important functions such as email and resource-sharing to take place.

 

What do data centers actually do?

They may have several specific tasks according to their owner’s business and industry. However, a standard data center workload includes:

• Processing data
• Storing data
• Facilitating communications
• Managing resources
• Supporting websites and applications
• Facilitating transactions
• Allowing virtual communications, from email to video conferences

 

What Does a Data Center Look Like?

They can come in a range of shapes and sizes. Traditionally, it is a physical space, such as a room or building, which contains the following components:

Component	Purpose
Storage systems	To store data, keeping information safe and available.
Servers	To process data and respond to requests from within and outside of the IT system.
Network infrastructure	To provide connectivity between different components.
Power supplies	To provide energy to the components.
Cooling systems	To maintain the hardware at a low, stable temperature.
Security systems	To protect data from unauthorized access and cyber threats.

Nowadays, data centers can also be virtualized or hybrid. Cloud-based data centers do not rely on, or use a minimum of, physical space or IT hardware.

What types of data center are there?

They can take different forms to suit different business needs. The primary data center types are:

Data center type	What does it mean?	Who is it most suitable for?
Enterprise	The business which uses the center owns and operates it.	Enterprise DCs can be custom-built with companies’ specific requirements and processes in mind, so are most suitable for businesses with unique needs.
Colocation	A third-party provider owns a facility and rents space and physical infrastructure to multiple clients. This covers: Power Cooling Security However, in a colocation facility the client owns and is responsible for its own hardware.	Businesses which require reliable facilities but don’t want the investment and commitment of owning their own data center, or lack the space or dedicated staff to operate one.
Managed services	A third-party provider supplies space, IT hardware and maintenance services to clients on a rental basis. This means businesses do not have to invest capital and time in buying and maintaining their own infrastructure.	Companies looking to outsource IT operations or which lack the necessary skilled in-house IT teams. Industries which require 24/7 support can also benefit.
Edge	Edge data centers are smaller and are located closer to end-users. This provides low-latency connectivity for cloud applications and services.	Edge facilities are most appropriate for applications requiring high-speed data processing and connectivity, as well as agility in case of changing demands.
Cloud	A cloud services provider owns and operates the “center”, providing clients with on-demand access to virtualized resources and services.	Businesses looking for: fast, flexible scaling and adaptability lower upfront infrastructure costs remote access
Green data centers	These centers have a strong sustainability focus during their construction and use. This includes: Eco-friendly construction materials Energy-efficient designs Use of renewable energy	Organizations with ambitious ESG goals, looking to reduce high energy use, or facing pressure to lower their carbon footprint and OPEX.
Hyperscale data centers	These are extremely large facilities designed to meet the vast computing requirements of major technology or data-forward businesses.	Large-scale or AI-centric businesses.

How to choose the right data center for your business

Selecting the most suitable data center structure for your business means balancing several core factors. These include:

• Budget: Businesses with more limited budget availability may be more inclined to choose a colocation data center rather than a custom-built enterprise center.
• Connectivity and performance requirements: Companies with high data throughput, low-latency needs, or global user bases may prioritize DCs with strong network carrier density, proximity to end users, and robust redundancy.
• ESG goals: Enterprises with a keen sustainability can look for data center buildings with renewable power source options, energy-efficient facilities and sustainable construction materials and designs.

What are the most common data center challenges?

Data centers can be extremely complex structures. Perhaps unsurprisingly, the more complicated the center, the more challenges it can face. Here are some of the most typical data center issues businesses may experience:

Power

Data centers require significant amounts of energy to operate. This means consistent access to high levels of electricity, requiring uninterruptible power supplies. This can be a practical challenge, as well as posing elevated operational costs.

Cooling

Data centers generate vast amounts of heat, especially from their servers. This can lead to overheating of the equipment and the surrounding hardware. Cooling technology is crucial for data centers to maintain a stable temperature and avoid heat-related damage.

Security

Data centers contain a range of sensitive information. Protecting critical or confidential data from cyber threats is a top priority for business. Failure to do so can leave enterprises open to hacking, viruses, phishing and ransomware.

Scaling and modernization

Quantities of stored data continue to grow at an exponential rate. Meanwhile, demand for processing power is rising dramatically in the face of artificial intelligence (AI) and machine learning.

These factors are leaving data centers racing to keep up with their increasingly complex and heavy workload. Scaling can involve increasing the amount of hardware or investing in more powerful assets.

What are data center issues in cloud environments?

Cloud-based IT infrastructures can remove some of the more physical challenges presented by traditional centers. However, this does not mean they are problem-free. The biggest difficulties and concerns for virtual data center include:

• Security: Cloud-based data centers can still be vulnerable to cyberattacks. A recent example is the Oracle Cloud Breach in April 2025.
• Data loss: Cloud environments are not immune to data loss from accidental deletion, misconfigured backups, or provider outages.
• Control: Businesses may struggle with reduced visibility and limited control over infrastructure and data. This is especially true in multi-tenant cloud setups or when using third-party management tools.
• Costs: Cloud services can become unexpectedly expensive due to poor resource management, scaling inefficiencies or hidden fees.

How does Evernex support data center operations?

Keeping a data center in top working order is key to smooth business operations. This means expert, regular maintenance is crucial. Comprehensive data center support involves:

• Inspections
• Cleaning
• Repairs
• Part replacements
• Upgrades
• Optimizations
• Decommissioning and disposal

OEMs (Original Equipment Manufacturers) withdraw technical support for hardware models following a set EOSL (End of Service Life) date.

This can leave data centers open to failure and security breaches.
In contrast, TPM (Third-Party Maintenance) providers like Evernex maintain data center hardware even after its warranty has expired. Here are some of the main benefits of partnering with a trusted TPM provider:

Server lifecycle extension

Evernex’s specialist maintenance extends the useful lifecycle of servers and other hardware for years after its EOSL date. This saves both the costs and the downtime of unnecessary asset replacements.

Cost savings

Evernex offers a range of certified, high-quality IT services even far lower costs than OEMs. According to Gartner, switching from OEM to TPM support can save businesses anywhere between 30% and 70% in maintenance costs.

Single point of contact

Evernex provides multi-vendor expertise and flexible, tailored service-level agreements. This means businesses can consolidate all their data center maintenance needs into one contract. This reduces overall IT costs and administrative workload.

SPaaS™ (Spare as a Service)

Evernex supplies an extensive range of refurbished replacement parts direct to your data center with SPaaS™. This helps extend the lifecycles of your hardware, even for legacy models. Certified, speedy spare part replacements also avoid the issues of supply chain delays and parts scarcity.

Performance optimization

Regular maintenance and updates help data centers perform reliably at the highest level. This makes business operations more efficient and avoids costly failure-related downtime.

IMACD (Install, Move, Add, Change)

Evernex offers IMACD (Install, Move, Add, Change) services, meeting your data center needs at every stage of its lifecycle. Whether you need to scale up or down, or relocate your infrastructure to another site, Evernex is here for you.

IT Asset Disposal

At the end of a device’s useful life, we manage its decommissioning, removal and responsible disposal. Our certified ITAD services ensure transparent documentation and environmentally sustainable IT recycling and disposition.

Evernex is a trusted partner with over 40 years of multi-vendor experience, expertise and state-of-the-art facilities. Our IT Maintenance has helped thousands of organizations to upgrade, maintain or move their entire data center.

 

The future of data centers

As the digital market evolves, so too must data centers. This means protecting against evermore sophisticated cyberthreats, and supporting emerging technologies and changing, increasingly data-intensive workloads.

Meanwhile, public and investor focus on data center sustainability is increasing, driving businesses to consider more environmentally-responsible data center infrastructures. This includes switching to renewable energy, more efficient cooling systems, and minimizing both e-waste and manufacturing demand.

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