Home Moving Why Are US Tech Businesses Relocating Their Data Centers Abroad?

Why Are US Tech Businesses Relocating Their Data Centers Abroad?

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Data centers are the backbone of tech companies everywhere.

Technology-based companies can’t operate effectively without having data centers to back them up. In the US, many of the top tech companies used to be headquartered in the tech hotspots like Silicon Valley. These regions, particularly in California, were home to the country’s largest data centers for decades. However, American firms are now relocating their data centers to other regions. The data center moves are expanding to other continents, which is a trend worth investigating.

Let’s take a deeper look at US data centers relocating to other countries.

Where Companies Are Relocating To

Data centers are the essential component of modern business operations. Without the facilities offered by data centers, tech companies everywhere would be unable to keep operations going. While it was previously considered favorable to have data centers close to the business headquarters, the trend shifted rather quickly. Now, the proximity of data centers is no longer a concern for tech companies. They’re more focused on the facilities offered by data centers and their effectiveness.

In light of that consideration, it doesn’t come as a surprise that Southeast Asia and Europe are the two regions attracting the most attention from US tech companies. In Southeast Asia, countries like Malaysia, Thailand, and Singapore have emerged as hotspots for technological advancement. US firms have notices that, which is why they’ve relocated their data centers to these regions.

In Europe, countries like Germany and France have generated the most interest as data center relocation sites. Various US tech firms have launched plans to move data centers to these regions in the next few years. There are many reasons that US companies have chosen these regions. So, let’s discuss some of them.

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Reasons Companies Are Relocating Data Centers

While the strategic reasons vary as per the firm in question, there are still some major reasons that all US tech companies heavily focus on. Here are some of the main reasons that US companies are relocating their data centers to other regions.

1. Sustainability

It’s no secret to any tech enthusiast that data centers require a large amount of energy to operate. As a result, they produce a massive amount of pollution that companies must hold themselves accountable for. Since data centers must remain in operation constantly, with minimal scheduled downtimes, it’s difficult for US companies to reduce the amount of energy they produce. More efforts are being made in Southeast Asian regions to incorporate sustainable data mining practices. US companies are relocating to these regions in hopes of leveraging such environmentally-friendly ways of running data centers.

2. Market Growth

The cloud computing markets in some regions of Europe and Southeast Asia are growing at exponential rates. As internet penetration deepens in such regions, the rate of digitization also increases. The evolving digital landscape allows these regions to have the growth potential that many US tech capitals are struggling to generate. Market growth is one of the major reasons that US tech companies are relocating their data centers to other countries.

3. Robust Infrastructure

The most beneficial thing about these regions is their robust infrastructures. US tech companies like Facebook have agreed that countries like Singapore have an enviable digital landscape. The network infrastructure and digital innovations in these regions continue to grow every year. This is simply too lucrative of an opportunity for US tech companies to ignore. It’s also worth mentioning that taxation rates and other operating costs are much more affordable in these countries, too. Tech companies looking to streamline finances gravitate towards these causes.

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How Data Center Relocations Work

Now that you have an idea of why US data centers are relocating, you should take a look at how these relocations work.

Planning

Like every commercial move, a data center relocation starts with planning. Company heads and upper management might get together and plan the scope of their data center move. The planning typically covers critical elements such as the disassembly of computers, de-cabling of servers, and packing of all items. Hiring a professional business moving company is often the most important part of planning a data center move. In California, full-service moving companies are helping companies relocate their data centers with reliable services.

Execution

Once the move is planned, the company starts the relocation process. Since most data centers are rather large, consisting of hundreds of server racks, their relocation can take months. A typical data center move is completed in phases, where the data is first migrated, backed up, and integrated. Then, all of the servers are disassembled and uninstalled. The professional technology movers then pack and rig every item, and get them ready for transportation.

Completion

Companies can opt for specialized transportation services, depending on the scope of their relocation project and the unique requirements of their tech items. Once all of the items have been delivered to the new site, the professional movers might help re-install and re-assemble the server racks. After that, the company only has to boot the systems up. The data center relocation is complete!

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Looking for Data Center Moving Companies?

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The full-service moving company is known for its verified and top-notch commercial moving services across the state. Their professional movers serve commercial customers in industries like technology, hospitality, healthcare, etc.