Understanding Data Centers
Data centers are a necessary foundation for our digital lives. They store, manage and process vast amounts of data that businesses and individuals rely on daily.
Site Selection
Choosing the right location for a data center is a critical decision for us and for the communities where we our facilities reside.
Economic and Social Benefits
Data centers play a vital role in local economies, creating jobs, supporting businesses and generating tax revenue for community use.
Sustainability and Environmental Responsibility
With sustainability at the forefront, our facilities are designed to maximize energy efficiency, minimize water consumption and leverage renewable energy sources wherever possible.
Our Approach
Learn more about our goals and commitments around maximizing sustainable, minimizing disruption and aligning with local priorities.
Frequently Asked Questions
Want answers about how data centers use resources, or interested in learning more about some common misconceptions? Check out the details here.
Doing good is in our DNA.
It’s normal to have questions about what it means to have a data center in your community, and that’s why we strive to work closely with local groups to build trust and transparency.
Our developments are built to be sustainable, minimally disruptive and aligned with local priorities. Throughout the entire lifecycle of a project, we take a thoughtful, community-first approach. This helps our data centers enhance local economies and support business needs and community well-being, all while preserving resources and ensuring growth is measured, responsible and beneficial.
Our Goal and Commitments
Our goal is to integrate seamlessly into the community while providing long-term economic benefits alongside necessary technologies for our collective digital world.
- Commitment to transparency: We prioritize community engagement, town halls, and direct dialogue to ensure that local stakeholders have a voice in the development process. Once available, we share information early and often to help residents and neighbors understand how our data centers operate and what steps we are taking to minimize our impact on the community.
- Commitment to partnership: Residents and business owners are encouraged to explore resources and participate in public forums to stay informed about our initiatives. We believe that open communication leads to better outcomes and helps us align our projects with the needs and priorities of the communities we serve.
Stream's Ripple Effect
Whether partnering with local organizations and industry non-profits, giving our employees dedicated volunteer time or educating our industry’s future, our team is dedicated to finding new ways to give back meaningfully in the communities where we live and work.
Frequently Asked Questions
Interested in the basics about data centers? Check out some of these common questions — and don’t miss our informational resources below!
What is a data center?
Answer: A data center is a facility where businesses store, connect and operate their IT hardware. Data centers provide highly reliable, stable environments for critical digital functions thanks to sophisticated support systems, and with thorough security measures in place, data centers also keep information safe. This makes data centers an ideal place for the applications that support our day-to-day lives and business operations.
A data center is a highly specialized building or section within a building designed to store, process and distribute vast amounts of digital information (documents, emails, photos, videos, etc.).
Inside the data center, thousands of servers — powerful computers that handle requests and calculations — work together to run websites, apps and online services. Storage devices, such as hard disk drives (HDDs) or solid-state drives (SSDs), securely hold everything from personal photos to massive business databases, ensuring information is available when needed. Networking equipment connected to data centers, including routers and switches, keeps data flowing quickly and securely between devices, businesses and users around the world. These components work together to power the digital experiences we rely on every day.
Why do we need data centers?
Answer: We need data centers because they keep the digital world running, ensuring that the services we rely on every day — banking, healthcare, communication, shopping, entertainment and public safety — work seamlessly and securely.
Every minute of the day:
- People send 251.1 million emails
- People watch 3.5 million YouTube videos
- Netflix subscribers stream 362,962 hours of video
- Doordash diners place $126,763 in orders
- 9000 LinkedIn members apply for jobs
Source: www.domo.com
These processes — and other vital digital services like emergency 911 operations — are only possible because of data centers. They provide the storage, computing power, and connectivity needed to handle this enormous amount of data generated and keep everything from emails and online orders to emergency response systems functioning without interruption.
Why might someone build a data center in my community?
Answer: Local business and economic development initiatives often seek out data center developments because of their role in supporting digital business, providing high-quality jobs in the region, adding significant tax revenue and more. The large capital investments data center developments bring make them an attractive asset for community and economic development, which is why incentives are often created by states or regions that want to grow their digital and economic resources.
A data center owner or operator might identify a community as a good place to build a data center because it offers the right combination of infrastructure, resources, location and talented workforces that make it a good fit. Developers also look for communities that are ready and able to benefit from data center construction.
Ultimately, data centers need to live where they can operate most efficiently, be the most connected and serve end users optimally.
In general, companies developing data centers look for:
- Availability of reliable electrical power
- Access to renewable energy
- Reliable high-speed internet cables and connections
- Stable environmental conditions to ensure efficient and secure data processing
- A sustainable water supply to support water-cooled systems. (In communities where water conservation is a concern, data centers often implement advanced, ultra-efficient cooling techniques or choose sites where they can leverage recycled or non-potable water to minimize their impact.)
- Favorable zoning policies
- A skilled workforce
- Ability to collaborate with local governments, businesses and residents to ensure responsible development and long-term economic benefits for the area
What can I expect from the development process?
Answer: At a high level, the data center development process often looks like this:
- Initial collaboration – We work with local governments and community stakeholders to assess whether a data center is a good fit.
- Engage with city officials and residents
- Review zoning, permitting, and infrastructure needs
- Ensure alignment with local, state, and federal regulations
- Environmental, location feasibility, and impact assessments – Before construction, we conduct studies to evaluate and understand:
- Power availability and grid capacity
- Water usage and sustainability
- Noise and light levels and community impact
- Traffic patterns and infrastructure needs
- Ecological surroundings
- Approval and construction planning – Once all approvals are secured and the site has been vetted, if we choose to develop, we create a structured construction plan to:
- Minimize disruption
- Prioritize local contractors and vendors
- Implement responsible land use strategies
- Ongoing community engagement – We look for ways to contribute meaningfully, maintaining open communication with local leaders and residents by:
- Providing regular updates on progress
- Addressing concerns as they arise
- Hosting town halls or informational meetings
- Assessing volunteer efforts and other opportunities
- Long-term commitment – Once the data center is operational, we remain an active and responsible community member by:
- Supporting local initiatives
- Ensuring long-term environmental and social responsibility
- Seeking ways to give back to the community through events and program opportunities
Related resources
Data centers and your daily life.
Data centers support essential services that you use every day. Here are just a few ways data centers make modern life possible:
- More efficient healthcare, enabling doctors to access patient records instantly and ensuring hospitals have real-time data on critical care needs.
- Global finance, with secure transactions, fraud detection, and the ability to pay for goods and services instantly with mobile payments.
- Cloud storage, helping you keep work files accessible to enable work from home opportunities (and personal files too, so you can store your family photos in the cloud and access them anywhere on your devices, for example).
- Social media and video streaming, which so many of us depend on to connect, learn and share experiences.
Without data centers, we would not be able to access the digital experiences we rely on daily. Beyond personal convenience, data centers provide reliability and security to ensure essential services remain available when we all need them most.
Data Center Myth Busting
Over time, some common misconceptions about hyperscale, enterprise-class data centers have emerged, and we’re here to help clarify! Everything we create at Stream is engineered to the highest levels of compliance and conscientiousness and built to world-class standards for safety, reliability and efficiency — but let’s answer some more common questions:
How efficient are data centers?
Answer: Data centers do require a lot of power. However, among the various classes of developments, data centers are actually one of the most efficient users of power — we work hard to be! Data center owners, operators and customers are also always working to improve energy use. Sustainable, hyper-efficient data centers help operators and their customers accomplish a lot with as little as possible, which means they are highly motivated to optimize energy usage.
How much water do facilities use?
Answer: Thanks to efficient cooling systems, many hyperscale and enterprise-class data centers use a comparable amount of water to a small office building!
Stream’s facilities are built with resource conservation in mind, so we use cooling solutions that minimize the amount of water needed — and what we do use is recycled by our system for even greater efficiency.
Do data centers actually depend on diesel?
Answer: Data centers very rarely use diesel generators for primary power. Most of the time, any existing diesel generators are used only as emergency backups in rare situations.
Since data centers are required to be online and working constantly (we call this uptime) with regular power supplies being as reliable as possible, the odds that a facility will need to use a backup diesel generator are exceedingly low.
Furthermore, at Stream, we’re proud to say that our hyperscale customers are some of the largest purchasers of renewable energy on the planet. Combined with very little need for diesel fuel, this helps ensure our operations keep emissions low and remain highly efficient.
How quiet are these facilities?
Answer: Data center facilities are designed and built to meet strict noise regulations, and with proper mitigation techniques, hyperscale and enterprise-class facilities often do very little to change ambient noise levels in surrounding communities.
Noise management is an integral part of our facility design and operational planning. We conduct comprehensive ambient noise studies both before the facility begins operation and after it is fully operational — among other robust due diligence measures.
Our hyperscale data centers are built to protect and insulate our critical cooling systems and other infrastructure, and we often integrate shielding that minimizes sound, ensuring the facility is a good neighbor to its community. These facilities are engineered to integrate seamlessly with minimal disruption and are built in strict compliance with robust, location-specific regulations and ordinances.
It’s possible that noise concerns from hyperscale data center development may be a result of concerns over crypto mining facilities, which are a different type of deployment that rely on thousands of high-powered machines running continuously, often in warehouse environments. These machines generate constant, high-frequency noise from cooling fans and processors, often without the same level of soundproofing or operational regulations that govern the design and operation of hyperscale, enterprise-class data centers.
Related article
In Sustainable Development, Respecting Communities is a Core Value
The number of hyperscale data centers has doubled in the last five years, with the U.S. accounting for more than half of total worldwide compute capacity. Reports also anticipate seven GW of projects reaching completion on a global scale in 2025 alone, with more than three of those residing in North America.
Choosing a location
Selecting the right location for a data center requires careful planning to ensure operational efficiency, environmental responsibility and a positive impact on local communities. Several key factors guide our decision-making process:
Selection criteria
We consider factors such as connectivity, power availability, infrastructure, regulations, and zoning to ensure the best locations for our data centers.
Environmental and community impact
We conduct thorough ecological and visual assessments to help us understand the nuances and needs of every site and minimize any potential environmental impact while creating positive economic benefits for the surrounding area.
Zoning and permitting
We work closely with local government agencies to understand zoning laws, permitting processes, and regulatory requirements and ensure that our projects align with the community’s needs.
Land use
In cases where a proposed site may negatively affect the environment or local communities and our designs cannot properly mitigate these impacts, we may choose to forego development in favor of a more suitable location
How data centers give back.
Data centers bring a lot of capital investment to local communities, as well as immediate construction jobs and long-term skilled operations jobs — but at Stream, we like to listen and find extra ways to give back with meaningful programs that align with local interests too.
Job creation
Data centers create high-quality, well-paying jobs at multiple levels, from construction workers who build the facility to engineers and technicians who keep it running. These roles provide long-term career opportunities in fields like IT, security, and facility management.
In large-scale developments with multiple phases, even ‘temporary’ construction jobs can be available for up to a decade — and potentially offer hundreds of long-term operations-based jobs.
Economic growth
Beyond employment opportunities for community members, data centers stimulate local economies by bringing in new business opportunities, supporting local vendors and increasing demand for services like construction, maintenance, and logistics. Their presence helps strengthen the overall economic landscape of a community without adding as much traffic or overall infrastructure impact compared to other classes of developments like manufacturing hubs.
Taxes
Data centers generate significant tax revenue that directly benefits the community, helping to fund essential services like schools, emergency response, public programs, and even beautification efforts in the community. Unlike some industries that require ongoing public subsidies, data centers provide a steady revenue stream without substantially increasing demand for housing, public transportation, or other municipal resources.
Infrastructure investments
Data centers often invest in upgrading local infrastructure, such as power grids, fiber-optic networks and roadways to ensure they are being additive to local landscapes. These improvements support the facility’s operations and also enhance the community’s overall connectivity and resilience, benefiting businesses and residents alike.
High-value development
While alternative types of industrial projects often strain public services, generate lots of traffic and raise taxes, data centers tend to generate significant economic benefits without overwhelming local roads, utilities, or housing markets.
Building the right way — for people, planet and beyond.
Across our designs, operations and business strategy, we are guided by commitments to delivering exceptional outcomes for all our stakeholders. To do this, our teams are constantly innovating our technologies and construction standards, collaborating with experts and communities — and much more.
Commitment to sustainability
Sustainability is at the core of how we develop and operate data centers. We prioritize environmental performance, climate resilience, stakeholder engagement, and sustainable design to meet the evolving needs of our customers while delivering long-term value for communities and their surroundings. By investing in innovation and empowering our people, we create data centers that are safe, secure, and built for a more sustainable future.
Water and energy consumption
Our data centers use advanced cooling technologies with configurable, energy-efficient designs to reduce water usage and optimize power consumption. We continuously improve these systems to ensure high performance and maximize resource efficiency, but even today, things like water use in our data centers remains low — our water use is similar to that of a small office building.
Renewable energy
We prioritize the use of renewable energy, sourcing power from wind, solar, and other sustainable resources whenever possible. This approach helps reduce our carbon footprint and supports our environmental and corporate sustainability goals – as well as those of our customers, who are the largest purchasers of renewable energy on the planet.
Efficiency as a business imperative
Efficiency and sustainability are essential to how we operate. We know that managing our consumption of resources is important for reducing environmental impact, improving the reliability of our facilities, and keeping operational costs low. We have embedded these efforts into our entire approach to development—they are just as important to us as to the stakeholders in the communities that house our facilities. We do this because it is important for our own business that we are trustworthy stewards and because we know that responsible use of resources is a priority for our customers and the communities we serve, who increasingly expect sustainable solutions along with long-term value.
Additional resources
Trust Stream as an enduring partner for meeting your evolving data center needs.
In our 27th year with a successful track record of data center projects in our past, present and future development portfolio, Stream is proud to offer location strategy, site development, build-to-suit data center solutions and immediate availability in key markets. Learn more about Stream’s controlled land sites across the US, and spacious hyperscale campuses in Phoenix, San Antonio, Dallas, Chicago and Atlanta, and beyond.