Resources

Data Centers 101: Technical Terms You Should Know

Written by Jon Hjembo | Oct 28, 2026, 12:00:00 AM

From cross connects to PUE, the data center industry is packed with technical jargon.

This post breaks down key terms related to data centers—technical terms relating to how data centers work and operator and market classification terms. Whether you're new to the field or just need a refresher, this glossary can help.

Data center technical terms

Available Capacity | Cloud On-Ramps | Colocation Capacity | Cross Connect | Gross Capacity | High Density | Internet Exchange | Peering | Power Capacity | PUE | Rack Density | Site Density | Transit

Available Capacity
Vacancy. The amount of fitted, leasable colocation space that is unfilled.

Cloud On-Ramps
Edge server locations where cloud service providers meet customers to give them dedicated, low-latency connectivity to cloud services.

Colocation Capacity
The amount of the data center floor space that is allocated to customer server infrastructure. This measure excludes office space, NoC, and areas for support equipment.

Cross Connect
A physical cable interconnecting equipment (servers, switches, routers) in a data center.

Gross Capacity
Total size of an operator’s data center footprint in a building. This may or may not be the full size of the building itself.

If the building is a data center, then the full building size is considered the gross capacity. If it is a mixed-use facility or a carrier hotel with multiple data centers, gross capacity equates to the size of the data center operator’s own footprint within the building.

High Density
Rack space designated for cabinets with servers that draw more power than standard. We categorize cabinets with 10 kW density or higher as high-density.

Internet Exchange (IX)
A converging point for networks to maintain peering arrangements with multiple partners.

Cross connects are aggregated within the IX fabric, which consists of a network of switches, so that members can expedite the process of interconnecting.

Peering
An arrangement in which two networks voluntarily agree to interconnect their networks for traffic exchange—typically on a settlement-free basis.

Peering can take place privately over a layer 2 connection or publicly using an IX.

Power Capacity
The full amount of utility power allocated to the data center.

We track total utility power rather than IT power, which is the amount of power allocated to servers.

PUE Ratio
Divides Total Facility Power (TFP) by IT Equipment Power (IEP).

The PUE ratio determines the proportion of a data center’s TFP that is used specifically for servers and computer equipment.

Rack Density
Refers to the amount of power drawn by servers, measured at the rack level as kilowatts per rack.

Site Density
The ratio of facility power to data center floor space, expressed as Watts per square foot (or square meter).

Transit
An agreement in which a smaller network pays a larger network (the transit provider) for access to its network, peering partner networks, and downstream connections to gain connectivity to the entire internet. 

Data center operator & market classification terms

Bandwidth Provider Colo | Carrier Neutral Colo | Colocation | Hub Markets | Proprietary Operators | Resellers | Retail Colocation Operators | Secondary Markets | Wholesale Operators

Bandwidth Provider Colo
Bandwidth carriers who operate their own colocation facilities. These operators may operate as carrier-neutral to varying degrees, but they are carriers. TeleGeography classifies them in our database separately from carrier neutral providers for a few different reasons.

First, for the purposes of aggregate market estimations. Bandwidth provider sites average much smaller size than carrier neutral sites in most markets. Secondly, because bandwidth providers generally prioritize their own carrier services in their facilities, even if they offer connectivity to a multiplicity of other competitive operators.

Carrier Neutral Colo
Retail colocation providers who are not carriers and who prioritize a neutral stance toward connectivity in their facilities.

Colocation
Colocation refers to shared data center space for power, cooling, and network interconnection. A wide diversity of entities, spanning carrier networks, content providers, private academic networks, government organizations, investment firms, and numerous other types of networks demand shared, secure space for server storage and connectivity.

Hub Markets
The most critical converging points of global network interconnection. Markets with the most international bandwidth and the largest interconnection facilities.

Proprietary Operators
Operators of their own non-colocation data centers. This category is included to track the data center developments of a select group of hyperscale content providers that have particularly high influence in the development of international network and data center infrastructure. 

Resellers
Operators that lease data center space from other colocation providers and then sub-lease rack space to their own customers. These operators do not own their data center infrastructure. (A number of resellers are included in our site database but are excluded from all of our analysis.)

Retail Colocation Operators
Operators of their own data center space who generally specialize in short-term leases to multiple tenants and lease sizes of less than half a megawatt of capacity. Prominent data center operators often manage both retail and wholesale leases, but we classify providers in one category or the other based on their primary source of revenue.

Secondary Markets
Markets that are not as large as global hubs but are significant interconnection points on a sub-regional level.

Wholesale Operators
Operators that primarily focus on longer-term, larger-scale colocation leases. Lease sizes are typically at least half a megawatt in size and lease lengths are generally 5 years or more. Prominent data center operators often manage both retail and wholesale leases, but TeleGeography classifies providers in one category or the other based on their primary source of revenue.

Get more data on data centers

...Plus industry-leading data on the global data center market with our Data Center Research Service platform. We collect and analyze the telecom industry's most comprehensive intelligence on data center capacity, service providers, pricing trends, and more.