Compass Datacenters Breaks Down the Transformation of Data Centers from Tech to Utility

Compass Datacenters Breaks Down the Transformation of Data Centers from Tech to Utility

DALLAS, TX – Compass Datacenters has recently published an article that discusses the shift in how we view data centers from one of a “tech” resource to that of a “utility”. The article, entitled “DATA CENTERS: FROM TECH TO UTILITY” helps to explain why our definition of a data center is evolving. In discussing how we’ve come to view the ubiquity of data much the way we take for granted electricity or say, indoor plumbing, the article states: 

“Using the term “commoditized” to describe a particular business or market often carries a negative connotation. Visions of generic versions of the same product quickly come to mind; this isn’t the case with data centers, where “commodity” serves as another term for intense demand. Many different phrases like, “data centers are the modern railroads,” have been used to describe the function they serve in our knowledge-based society. While concise, a more compelling argument can be made to explain the present-day data center landscape. Think utilities. Our societal reliance on the immediate access to everything from the Gross National Product of Lichtenstein to a better recipe for meatloaf is analogous, for example, to electricity. We have become so dependent on the availability of power whenever we flip a switch or plug a cord into a wall socket that its value is only apparent when it’s not available. So it is with all things that are data center resident.” 

Of course, this shift in how we perceive data – and our ever-growing need to have it available to us everywhere, instantaneously – is shaping the data center industry as we speak: 

“The impact of artificial utility status on data centers will require many, if not all, providers to make substantial changes to their current mode of operation. Since substantive differences between the physical facilities themselves are eroding, the market has responded by effectively placing a ceiling on the price/MW that providers can charge within any given geographic location. The primary challenge facing today’s data center companies is to drive down their internal costs to maintain both margins, and if necessary, competitive maneuverability in pricing. 

Naturally, the modifications and changes required to effect substantial cost reductions, vary from provider to provider. In general, however, the achievement of these cost contraction efforts will be a function of refinements in product design, personnel, and processes.”

Founded in 2011 by CEO Chris Crosby, Compass Datacenters is a worldwide leader in core and edge data center solutions for companies of all sizes and offers scalable data center solutions. Compass has data center campuses in Dallas, Ft. Worth, Columbus, Northern Virginia and Phoenix and we’ve built facilities for customers in a number of markets including Nashville, and Raleigh. For more information, visit or follow @DataCenterFairy on Twitter.

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