Gov. Arnold Schwarzenegger signed an executive order February 9, 2010 stipulating that California reduce the total amount of data center square footage currently utilized by state agencies by 25 percent by July, and by 50 percent by July 2011.

The executive order sets in motion a massive, fast-moving data center consolidation of the 400 data centers and server rooms operated by California state agencies.

In most cases, agencies will migrate applications to a state-owned data center. But given the timetable, state officials say some workloads may move to third-party data centers, potentially boosting demand for colocation and managed hosting services.

Find California colocation with FindADataCenter.com.