Thursday, August 27, 2026

Data Centers

 From The Enterprise:

I spent the late 1990s and early 2000s building data centers in the middle of America's largest cities. We built them in Dallas, Miami, New York, Los Angeles, Chicago, and St. Louis. Thousands of people walked past our buildings every day. They did not protest them. Most did not even know what was inside. That silence was not a cover for some environmental menace. Our data centers were good neighbors. They occupied underused buildings, produced almost no traffic, and bought enormous amounts of electricity from the grid while our cooling systems consumed no water. Servers and telecommunications gear hummed behind anonymous walls while the fiber inside connected businesses and consumers to a rapidly expanding Internet.

 We were hardly alone. After the Telecommunications Act of 1996 opened local telephone networks to competition, venture-backed companies raced to build carrier hotels and colocation facilities across the country. Section 251 of that law required incumbent carriers to interconnect with competitors, which created demand for neutral buildings where rival networks could meet. Equinix, Colo[.]com, Exodus, Switch & Data, LayerOne and scores of others poured billions of dollars into the physical plant of the dot-com economy. The Federal Reserve later described "a massive boom in the sector, beginning in 1997." Then the bubble burst, investors lost fortunes, and the data centers remained. They became the backbone of the cloud, mobile communications, streaming, e-commerce, and now AI. (Read more.)


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