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Data Centers 101: Technical Terms You Should Know

By Jon HjemboMar 12, 2025

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

Today, we’re breaking down 13 key colocation terms. Whether you're new to the field or just need a refresher, this simple glossary can help.

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.

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. 

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Jon Hjembo

Jon Hjembo

Senior Research Manager Jonathan Hjembo joined TeleGeography in 2009 and heads the company’s data center research, tracking capacity development and pricing trends in key global markets. He also specializes in research on international transport and internet infrastructure development, with a particular focus on Eastern Europe, and he maintains the dataset for TeleGeography’s website, internetexchangemap.com.

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