Data Center Consolidation

Definition of Data Center Consolidation

Data center consolidation is the process of combining and streamlining multiple data centers’ resources, infrastructure, and operations into a single, more efficient, and centralized facility. This consolidation aims to reduce costs, improve management, and enhance overall performance. It often involves virtualization, standardization, and the implementation of energy-efficient systems.


The phonetic pronunciation of the keyword “Data Center Consolidation” is:- Data: /ˈdeɪtə/ (day-tuh)- Center: /ˈsɛntər/ (sen-ter)- Consolidation: /kənˌsɒlɪˈdeɪʃən/ (kuhn-sol-i-day-shuhn)

Key Takeaways

  1. Improves efficiency by centralizing resources in fewer data centers, leading to reductions in power, cooling, and operational costs.
  2. Enhances security and compliance by making it easier to manage data protection, monitoring, and maintenance in a centralized location.
  3. Boosts agility and scalability by enabling organizations to adapt quickly to changing business needs and the integration of new technologies.

Importance of Data Center Consolidation

Data Center Consolidation is an important technology term as it refers to the process of merging multiple data centers or IT systems into a more centralized and efficient operation, usually involving the migration of applications, systems, and infrastructure.

This process is vital for organizations to optimize their resources, streamline operations, reduce costs, and improve overall performance.

By consolidating data centers, organizations can eliminate redundancies, minimize energy consumption, enhance security measures, and make effective use of available resources.

Additionally, it fosters better scalability, simplified management, and easier compliance with regulations, contributing significantly to the strategic growth and technological adaptability of an organization.


Data center consolidation serves as a strategic approach to streamline an organization’s IT infrastructure by centralizing and optimizing computing resources in fewer data centers. Its purpose is to enhance operational efficiency, improve management and control, increase resource utilization, and ultimately, reduce the organization’s overall costs. Consolidation typically involves the merging of data centers, virtualization of servers and storage, and the application of automation and monitoring tools.

The drive behind this strategy can be attributed to rapid advancements in technology and the incessant need for organizations to maintain resilient, scalable, and cost-effective IT systems. By embracing data center consolidation, organizations can reap several benefits. Firstly, they can reduce energy consumption and save on cooling and power costs, as consolidated data centers require fewer physical servers and hardware to carry out the same tasks.

Moreover, streamlined operations facilitate better management of resources such as network, storage, and personnel – enabling the organization to be more agile in responding to new challenges and opportunities. Data center consolidation also paves the way for enhanced security, given that it is easier for IT teams to monitor and safeguard a smaller number of computing sites. In essence, data center consolidation acts as a catalyst for organizations to bolster their infrastructure and enable a more adaptable, efficient, and secure IT environment.

Examples of Data Center Consolidation

Hewlett Packard Enterprise (HPE) Data Center Consolidation: In 2017, Hewlett Packard Enterprise (HPE) consolidated their data centers across multiple locations to improve efficiency, reduce energy consumption, and cut operational costs. Through this consolidation, HPE reduced the number of data centers from 85 to 11 and reduced their carbon footprint by 80%. This initiative also improved their overall service delivery and reduced application deployment times.

United States Federal Government’s Data Center Consolidation Initiative (FDCCI): Since 2010, the U.S. Federal Government has been implementing the Federal Data Center Consolidation Initiative (FDCCI) to reduce the number and size of federal data centers, aiming to decrease IT spending and save taxpayer dollars. This effort involves consolidating multiple data centers to improve IT security, reduce redundant infrastructure, and increase operational efficiency. As a result, the federal government has closed more than 3,000 data centers and saved over $2 billion in IT expenditures.

Cisco Systems Data Center Consolidation: Cisco Systems, a multinational technology conglomerate, initiated a data center consolidation project to optimize their infrastructure by consolidating multiple data centers into fewer, larger, and more efficient facilities. This led to reduced energy consumption, improved management efficiency, and reduced costs, as well as better performance and reliability. By transforming their data centers, Cisco achieved a 30% reduction in infrastructure costs and increased customer satisfaction.

Data Center Consolidation FAQ

What is Data Center Consolidation?

Data Center Consolidation refers to the process of combining multiple data centers and IT resources into a more centralized and efficient infrastructure. This consolidation typically involves managing, optimizing, and streamlining facilities, hardware, software, and other technologies to reduce the overall costs, complexity, and maintenance requirements.

What are the benefits of Data Center Consolidation?

There are several benefits of Data Center Consolidation, including reduced costs due to reduced energy consumption and improved resource utilization, easier management and administration resulting from a simplified IT infrastructure, increased operational efficiency, and better utilization of existing assets. It can also lead to improved security and compliance by centralizing sensitive data and maintaining stricter controls over access and monitoring.

What are the challenges of Data Center Consolidation?

Data Center Consolidation may come with some challenges, including potential downtime during the consolidation process, the need for reconfiguration of existing systems, data migration complexities, and resistance from stakeholders who are accustomed to the existing infrastructure. Additionally, organizations should carefully plan and consider all factors, such as existing contracts and long-term IT strategy, before proceeding with consolidation.

What is the role of virtualization in Data Center Consolidation?

Virtualization is an essential component of Data Center Consolidation. It allows multiple virtual machines (VMs) to run on a single physical server, which improves resource utilization and reduces the number of physical servers needed. This technology helps decrease energy consumption, frees up valuable data center space, and simplifies management and administration, ultimately enabling a more streamlined and efficient infrastructure.

How do I start the Data Center Consolidation process?

To start the Data Center Consolidation process, follow these general steps:
1. Assess your current IT infrastructure, evaluate your goals, and determine the feasibility of consolidation.
2. Create a detailed consolidation plan, including timelines, resource requirements, and risk mitigation strategies.
3. Involve all necessary stakeholders, such as IT staff, management, and external partners.
4. Carefully migrate data and applications to the consolidated infrastructure, ensuring minimal downtime and disruption to the organization.
5. Continuously monitor and optimize the new infrastructure to maintain efficiency and effectiveness.

Related Technology Terms

  • Virtualization
  • Cloud Computing
  • Server Consolidation
  • Energy Efficiency
  • Infrastructure Optimization

Sources for More Information


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