The Economics of Everyday Things 92. Data Centers
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May 12, 2025 Ever wonder where 'the cloud' actually is? It’s packed into ordinary-looking warehouses across the country! Discover how data centers serve as the backbone of our digital lives, managing everything from smartphones to financial transactions. Northern Virginia stands out as a critical hub, handling a whopping 70% of global internet traffic. Plus, learn about the quirky and unexpected locations of these facilities—think abandoned farms and even ocean sandbars. And don’t miss the lighthearted story of a snake causing a power outage!
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Cloud Lives in Data Centers
- Data centers are the physical buildings where the cloud's digital data lives and operates.
- They are essential hubs that store, process, and connect the digital world to users’ devices.
Data Centers Store and Process Data
- Data centers handle both data storage and processing, powering everything from streaming to AI.
- Streaming a show uses about one kWh, while AI image generation can use three kWh per request.
Choosing Prime Data Center Sites
- Choose data center locations near major electrical infrastructure and fiber optic cables.
- Prioritize cheap electricity and affordable land to optimize costs and connectivity.