Title: Why Do We Need Data Centers? What Fails Without Them | FOUND

Description: Why do we need data centers? Because 911, payments, and the services most homes use must not stop. What fails in an outage, and why shared facilities cost less.

Canonical: https://lotsfound.com/insights/why-do-we-need-data-centers/

# Why do we need data centers?

We need data centers because the services most households use each day, from 911 calls to payments, run on servers that must not stop. A purpose-built facility keeps those servers powered, cooled, connected, and secure, and it usually does so more efficiently than scattered server rooms. That case explains the building type. It does not prove that a specific site needs one.

[Discuss your land](/contact/)

In this article

1. [Why we need data centers](#why-we-need-data-centers)
2. [What fails when a data center goes down](#what-fails-when-a-data-center-goes-down)
3. [How critical services plan for failure](#how-critical-services-plan-for-failure)
4. [Why shared data centers usually cost less than server rooms](#why-shared-data-centers-usually-cost-less-than-server-rooms)
5. [How fast demand is growing](#how-fast-demand-is-growing)
6. [Where the case for need has limits](#where-the-case-for-need-has-limits)
7. [Key recap](#key-recap)
8. [Questions](#questions)
9. [References](#references)

> **Quick summary:** This guide makes the case for why data centers exist: what fails when one goes down, how many people depend on them, and why shared facilities cost less than server rooms. It is for residents and officials who want the argument for need before they weigh a proposal. The key takeaway: the need for the building type is well documented, but it does not settle whether one belongs on a specific tract.

## Why we need data centers

We need data centers because the services most people use each day run on servers, and those servers have to keep running through storms, outages, and repairs. The [Census Bureau's 2024 survey](https://www2.census.gov/programs-surveys/acs/summary_file/2024/table-based-SF/data/1YRData/acsdt1y2024-b28002.dat) estimates that about 93 of every 100 North Carolina households subscribe to broadband of some type. About 93 of every 100 have [a smartphone](https://www2.census.gov/programs-surveys/acs/summary_file/2024/table-based-SF/data/1YRData/acsdt1y2024-b28001.dat). Those connections carry calls, payments, health records, and government services to and from servers.

The federal government named the role in 2007. The [EPA's report to Congress](https://www.energystar.gov/ia/partners/prod_development/downloads/EPA_Datacenter_Report_Congress_Final1.pdf) called data centers "essential to the functioning of business, communications, academic, and governmental systems." The full list of services is in [What are data centers used for?](/insights/what-are-data-centers-used-for/), and the definition of the building is in [What is a data center?](/insights/what-is-a-data-center/)

## What fails when a data center goes down

When a data center goes down, the services that run in it stop for everyone who depends on them. North Carolina has a recent example. After Hurricane Helene hit Asheville in 2024, the federal climate data center there reported that [all of its archived data was inaccessible](https://www.ncei.noaa.gov/news/helene-devastates-southeast-impacts-noaa-ncei-headquarters). Its network provider had limited function, and many key products and services were unavailable. Monthly national climate reports were delayed.

That was one archive. The services with the highest stakes plan for that kind of failure in advance.

- **Payments.** The Federal Reserve runs its [Fedwire applications from several data centers](https://www.frbservices.org/wp-content/uploads/fedwire-resilience.pdf). It places them far enough apart to limit the effects of most natural disasters, power and telecommunication outages, and regional disruptions.
- **Emergency calls.** North Carolina's [2024 State 911 Plan](https://it.nc.gov/documents/911-board/2024-state-911-plan/open) designs the 911 network for 99.999 percent service availability.
- **State government.** The state's two data centers are [more than 200 miles apart](https://it.nc.gov/blog/2024/09/23/ncdit-solutions-help-nc-residents-state-agencies-during-potential-natural-disasters). They are designed to run for extended periods during regional power outages.

## How critical services plan for failure

Critical services plan for failure with redundancy: spare equipment, backup power, and a second site that can take over. A data center is the building designed to hold that redundancy. The 911 network connects to six geographically redundant core sites for call routing and two in-state data centers for hosted call handling. Every answering point connects to all six core sites.

The state's own data centers show how the second site works. A [2020 state energy plan](https://files.nc.gov/ncdeq/2020_DEQ_SEO_Comprehensive_Energy_Program_Report_Final_1-27-21.pdf) describes the Western Data Center as moving away from being mainly a backup and recovery site to carrying a growing server load. North Carolina tax law writes the same standard into its definition. Under [N.C. Gen. Stat. § 105-164.3](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-164.3.html), a datacenter's power and cooling must allow any component to be serviced without stopping the computers.

[Data center redundancy: what it means and what it asks of land](/insights/data-center-redundancy/) explains the N, N+1, and 2N terms and what redundancy asks of a site.

> **The short version:** The need is not for more buildings in the abstract. It is for computing that does not stop. Purpose-built facilities, backed up by a second site, are how operators meet that standard.

## Why shared data centers usually cost less than server rooms

Shared data centers usually cost less than scattered server rooms because large facilities use power more efficiently and spread fixed costs across many users. The [International Energy Agency](https://iea.blob.core.windows.net/assets/de9dea13-b07d-42c5-a398-d1b3ae17d866/EnergyandAI.pdf) reports that enterprise data centers, run by one organization for its own use, are typically smaller and less efficient. Cooling takes about 7 percent of the electricity in efficient hyperscale facilities and over 30 percent in less efficient enterprise ones. The enterprise share of world capacity fell from 85 percent in 2005 to about 28 percent.

Governments have followed the same arithmetic.

- **Federal agencies.** By December 2023, [23 of 24 agencies had met data-center closure, optimization, and savings goals](https://files.gao.gov/reports/GAO-25-107743/index.html), according to the GAO. Agencies reduced spending and projected costs by 6.6 billion dollars from fiscal years 2012 through 2021.
- **North Carolina.** In 2015 the General Assembly required the state IT department to [manage most enterprise IT functions](https://it.nc.gov/about/agency-consolidation) in the executive branch. The department's [colocation service](https://itservices.nc.gov/services/hosting/data-center-co-location-services) states that moving agency servers into its facilities frees office space and cuts recurring cost.
- **Security staff.** [NIST's cloud security guidelines](https://nvlpubs.nist.gov/nistpubs/Legacy/SP/nistspecialpublication800-144.pdf) note that large computing facilities let security staff concentrate on security and privacy.

## How fast demand is growing

Demand for data-center computing roughly tripled from 2014 to 2023, measured by electricity. The [Department of Energy](https://www.energy.gov/articles/doe-releases-new-report-evaluating-increase-electricity-demand-data-centers) reports that United States data centers used 58 terawatt-hours in 2014 and 176 terawatt-hours in 2023, about 4.4 percent of national electricity. Worldwide, the [International Energy Agency](https://iea.blob.core.windows.net/assets/3179f7f8-01f6-4dd6-bffa-c9f7b73f1dc9/KeyQuestionsonEnergyandAI.pdf) projects use to roughly double from 485 terawatt-hours in 2025 to 950 in 2030. [Why are so many data centers being built?](/insights/why-are-so-many-data-centers-being-built/) covers the forces behind that growth.

## Where the case for need has limits

The case for need has limits, and the public record names them. Outsourcing is not always cheaper. The federal budget office stated in its [2019 data-center policy](https://trumpwhitehouse.archives.gov/wp-content/uploads/2019/06/M-19-19-Data-Centers.pdf) that vendor services such as cloud are "not always more cost-effective" than agency-hosted services. In a [2026 GAO review](https://files.gao.gov/reports/GAO-26-107530/index.html), 17 of 24 federal agencies said cloud cost control required changes in how they manage IT.

The larger limit is local. Broad need for data centers does not show that a specific campus will serve local residents or belongs on a specific tract. Power terms, water, noise, generators, and tax agreements are project questions. [Are data centers bad? The objections, checked against the record](/insights/data-center-misconceptions/) checks each one. [When was the first data center built? A short history](/insights/history-of-data-centers/) shows how long this need has existed.

> **Take action:** If you are weighing a proposal or an offer near your land, start from what the record shows about that tract. Start with [Tell us what you are looking for](/contact/).

## Key recap

- About 93 of every 100 North Carolina households subscribe to broadband and own a smartphone, and those connections reach services that run on servers.
- When a data center fails, its services stop. Hurricane Helene cut public access to the federal climate archive in Asheville in 2024.
- Payments, 911, and state systems use redundant, geographically separate data centers to keep running.
- Shared facilities use power more efficiently than scattered server rooms. Federal agencies cut spending and projected costs by 6.6 billion dollars through consolidation.
- The need for the building type does not prove the need for a specific campus on a specific tract.

## Questions

### Why are data centers important?

Data centers are important because they keep the servers behind everyday services running without interruption. Emergency calls, payments, health records, and government applications all depend on them, and those services plan for a data-center failure with backup sites.

### What happens if a data center goes down?

The services that run in it stop unless a second site takes over. After Hurricane Helene in 2024, the federal climate archive in Asheville reported that all of its archived data was inaccessible for a time.

### Could companies keep their servers in their own offices instead?

They can, and some do. Enterprise facilities still hold about 28 percent of world capacity. They are typically smaller and less efficient, and outsourced hosting is not always cheaper, so each organization compares the costs.

## References

Primary sources cited on this page, in APA style.

- Executive Office of the President, Office of Management and Budget. (2019, June 25). *Update to Data Center Optimization Initiative (DCOI)* (M-19-19). [https://trumpwhitehouse.archives.gov/wp-content/uploads/2019/06/M-19-19-Data-Centers.pdf](https://trumpwhitehouse.archives.gov/wp-content/uploads/2019/06/M-19-19-Data-Centers.pdf)
- Federal Reserve Financial Services. (2024, June). *Business resiliency statement: Fedwire Funds Service and Fedwire Securities Service*. [https://www.frbservices.org/wp-content/uploads/fedwire-resilience.pdf](https://www.frbservices.org/wp-content/uploads/fedwire-resilience.pdf)
- International Energy Agency. (2025, April 10). *Energy and AI*. [https://iea.blob.core.windows.net/assets/de9dea13-b07d-42c5-a398-d1b3ae17d866/EnergyandAI.pdf](https://iea.blob.core.windows.net/assets/de9dea13-b07d-42c5-a398-d1b3ae17d866/EnergyandAI.pdf)
- International Energy Agency. (2026, April 16). *Key questions on energy and AI*. [https://iea.blob.core.windows.net/assets/3179f7f8-01f6-4dd6-bffa-c9f7b73f1dc9/KeyQuestionsonEnergyandAI.pdf](https://iea.blob.core.windows.net/assets/3179f7f8-01f6-4dd6-bffa-c9f7b73f1dc9/KeyQuestionsonEnergyandAI.pdf)
- Jansen, W., & Grance, T. (2011, December). *Guidelines on security and privacy in public cloud computing* (NIST Special Publication 800-144). National Institute of Standards and Technology. [https://doi.org/10.6028/NIST.SP.800-144](https://doi.org/10.6028/NIST.SP.800-144)
- N.C. Gen. Stat. § 105-164.3 (2025). [https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-164.3.html](https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-164.3.html)
- NOAA National Centers for Environmental Information. (2024, October 4). *Helene devastates Southeast, impacts NOAA NCEI headquarters*. [https://www.ncei.noaa.gov/news/helene-devastates-southeast-impacts-noaa-ncei-headquarters](https://www.ncei.noaa.gov/news/helene-devastates-southeast-impacts-noaa-ncei-headquarters)
- North Carolina 911 Board. (2023, December 1). *North Carolina 2024 state 911 plan*. [https://it.nc.gov/documents/911-board/2024-state-911-plan/open](https://it.nc.gov/documents/911-board/2024-state-911-plan/open)
- North Carolina Department of Environmental Quality. (2021, January 25). *EO 80 annual report: Comprehensive program update and cabinet agency utility consumption*. [https://files.nc.gov/ncdeq/2020_DEQ_SEO_Comprehensive_Energy_Program_Report_Final_1-27-21.pdf](https://files.nc.gov/ncdeq/2020_DEQ_SEO_Comprehensive_Energy_Program_Report_Final_1-27-21.pdf)
- North Carolina Department of Information Technology. (2024, September 23). *NCDIT solutions help N.C. residents, state agencies during potential natural disasters*. [https://it.nc.gov/blog/2024/09/23/ncdit-solutions-help-nc-residents-state-agencies-during-potential-natural-disasters](https://it.nc.gov/blog/2024/09/23/ncdit-solutions-help-nc-residents-state-agencies-during-potential-natural-disasters)
- North Carolina Department of Information Technology. (n.d.). *Agency consolidation*. Retrieved October 2, 2026, from [https://it.nc.gov/about/agency-consolidation](https://it.nc.gov/about/agency-consolidation)
- North Carolina Department of Information Technology. (n.d.). *Data center co-location services*. NCDIT IT Services. Retrieved October 2, 2026, from [https://itservices.nc.gov/services/hosting/data-center-co-location-services](https://itservices.nc.gov/services/hosting/data-center-co-location-services)
- U.S. Census Bureau. (2025, September 11). *Presence and types of internet subscriptions in household (Table B28002), 2024 American Community Survey 1-year summary file* [Data set]. [https://www2.census.gov/programs-surveys/acs/summary_file/2024/table-based-SF/data/1YRData/acsdt1y2024-b28002.dat](https://www2.census.gov/programs-surveys/acs/summary_file/2024/table-based-SF/data/1YRData/acsdt1y2024-b28002.dat)
- U.S. Census Bureau. (2025, September 11). *Types of computers in household (Table B28001), 2024 American Community Survey 1-year summary file* [Data set]. [https://www2.census.gov/programs-surveys/acs/summary_file/2024/table-based-SF/data/1YRData/acsdt1y2024-b28001.dat](https://www2.census.gov/programs-surveys/acs/summary_file/2024/table-based-SF/data/1YRData/acsdt1y2024-b28001.dat)
- U.S. Department of Energy. (2024, December 20). *DOE releases new report evaluating increase in electricity demand from data centers* [Press release]. [https://www.energy.gov/articles/doe-releases-new-report-evaluating-increase-electricity-demand-data-centers](https://www.energy.gov/articles/doe-releases-new-report-evaluating-increase-electricity-demand-data-centers)
- U.S. Environmental Protection Agency, ENERGY STAR Program. (2007, August 2). *Report to Congress on server and data center energy efficiency: Public Law 109-431*. [https://www.energystar.gov/ia/partners/prod_development/downloads/EPA_Datacenter_Report_Congress_Final1.pdf](https://www.energystar.gov/ia/partners/prod_development/downloads/EPA_Datacenter_Report_Congress_Final1.pdf)
- U.S. Government Accountability Office. (2025, February 25). *High-risk series: Heightened attention to high-risk areas could yield billions in savings and a more efficient and effective government* (GAO-25-107743). [https://files.gao.gov/reports/GAO-25-107743/index.html](https://files.gao.gov/reports/GAO-25-107743/index.html)
- U.S. Government Accountability Office. (2026, June 23). *Cloud computing: Federal government needs to address procurement challenges* (GAO-26-107530). [https://files.gao.gov/reports/GAO-26-107530/index.html](https://files.gao.gov/reports/GAO-26-107530/index.html)

## Data-center fundamentals

- [What is a data center?](/insights/what-is-a-data-center/)
- [What is a hyperscale data center?](/insights/what-is-a-hyperscale-data-center/)
- [Types of data centers and the land each one needs](/insights/types-of-data-centers/)
- [What is a colocation data center?](/insights/colocation-data-center/)
- [What is an edge data center?](/insights/edge-data-center/)
- [What is an AI data center?](/insights/ai-data-center/)
- [Data center campus: what it is and what it needs from land](/insights/data-center-campus/)
- [Data center vs warehouse: how the site needs differ](/insights/data-center-vs-warehouse/)
- [What is PUE (power usage effectiveness)?](/insights/what-is-pue/)
- [What are data centers used for?](/insights/what-are-data-centers-used-for/)
- [When was the first data center built? A short history](/insights/history-of-data-centers/)
- [What does a data center look like?](/insights/what-does-a-data-center-look-like/)
- [How does a data center work?](/insights/how-does-a-data-center-work/)
- [Who owns data centers?](/insights/who-owns-data-centers/)
- [Data center vs. cloud: on-premises, colocation, and cloud compared](/insights/data-center-vs-cloud/)

Send the requirements. We reply with how we would run the search.

[Discuss your land](/contact/)

## Tell us what the project needs

Load, acreage, counties, and timeline. We reply with how we would run the search and where we would start.

[Start a site search](/contact/)

[Try the calculators](/tools/)

Transactions are handled through a licensed North Carolina real estate brokerage.