Building a full-scale, traditional data center requires millions of dollars and many months of construction. It’s an endeavor beyond the reach of most small and medium-sized organizations.
But that doesn’t mean smaller companies can’t have their own data centers. They can – by building a micro data center.
What Is a Micro Data Center?
A micro data center is a small-scale facility for housing IT equipment. While there is no official definition of how small a data center needs to be to qualify as “micro,” most are only large enough for a handful of server racks.
Some micro data centers are mobile, meaning they can be easily relocated. Some may also use a modular design that allows them to integrate into larger data centers if desired. However, neither portability nor modularity is required to create a micro data center. Any standalone, fixed facility that houses server racks and other common data center components can function as a micro data center.
Note, too, that some folks draw a distinction between micro data centers and mini data centers, with the latter being slightly larger than the former. But again, these labels aren’t formally defined. The line separating micro from mini data centers is mostly subjective.
Why Create a Micro Data Center?
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The main reason to consider building a micro data center is that it’s a low-cost way for organizations with smaller-scale IT infrastructure needs to create a dedicated data center facility.
Micro data centers are an upgrade from traditional server rooms, which smaller businesses sometimes operate but which lack the dedicated power systems, HVAC systems, physical security controls and other components of a “true” data center.
At the same time, micro data centers are much less expensive than a full-scale data center, which the typical small or medium-sized business can’t afford to build or operate – and which it likely doesn’t need in the first place because most smaller companies don’t need to deploy thousands of servers. They’re ideal for businesses that need space for dozens – or maybe a hundred – servers, not thousands.
Micro data centers aren’t the only way for smaller companies to acquire dedicated data center space. Another option is to use colocation, which allows businesses to deploy servers in a traditional data center that they share with other companies. The downside of colocation is that customers don’t get a facility all to themselves, however – which they do in the case of a micro data center.

While there is no consensus on the size of a micro data center, most contain just a few racks and essential infrastructure. Image: Alamy.
Steps for Creating a Micro Data Center
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The exact process for developing a micro data center will vary depending on factors like how large the facility needs to be and whether portability or modularity are important. But in general, the main steps include the following.
1. Choose a Data Center Location
First, decide where the data center will exist. Will it operate inside a building that the business already owns? Or will it need to be a standalone facility that can be deployed in an exterior location?
2. Deploy Physical Infrastructure
Based on the location of the micro data center, the business can choose an appropriate physical infrastructure to house it. A facility that needs to operate in an exterior location and that requires portability could be housed in a shipping container. In other cases, a small, fixed building may work well.
It may also be possible to set up a micro data center using part of a larger building – but the facility must have dedicated power and cooling. Otherwise, it will be more of a server room than a true data center.
3. Set up Auxiliary Systems
Deploying power and HVAC systems is the next step in creating a micro data center. The business must assess the facility’s need for electricity and cooling capacity and install equipment accordingly.
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4. Secure the Data Center
Physical security controls are critical for deploying a micro data center. Based on the level of risk the business can tolerate and the security of the location where it plans to deploy the facility, it should install locks, as well as other physical security protections it may need, like camera systems to monitor for malicious activity.
5. Deploy IT Equipment
With the rest of the facility set up, the business can take the final major step by deploying server racks and servers inside the micro data center. Once these are set up, the facility is ready to operate on its own as a dedicated, small-scale data center.