Cold data storage gives companies strong file organization, removing unused/barely used data from mainstream information. If you’ve ever considered how you could improve your own cold data storage, use this article as a starting off point. Here are some of its main functions and some of the powerful benefits.

What Is Cold Data Storage?

Cold data storage separates rarely-used information from actively-used data and places it into a specific location. Cold data storage takes longer to access but prevents slowdowns when connecting to functional data. It is a modern necessity for technologically-advanced companies.

Think of it like a work contract. You sign the contract (cold data), agreeing to work at a company. It’s then stored away and almost never used or retrieved. Other documents (active data) are shared, edited and thrown out. They’re used often but that doesn’t make them more important than cold data.

A picture of hands going through paper documents in a cabinet.
Cloud data storage is like an important document filed away for safe keeping.

Who Needs Cold Data Storage?

Enterprises accessing large amounts of data need a dedicated cold data server. Similarly, they need a separate location for lesser-used data. This ensures efficiency as they’re able to access active data faster and fluidly. If one server focuses solely on active data, accessing cold data won’t affect it.

Companies with large amounts of important records need cold storage as well. Things that aren’t needed more than once per month, year or decade are stored away from high-access files. Furthermore, it benefits enterprises that deal with legal documentation and need to recall older records from time-to-time.

A display of digital data.
Companies with growing data need extensive storage.

The Perks of Cold Data Storage

There are quite a few benefits to using cold data storage, though some standout more than others. Here are some basic features that appear to be more important to businesses than others:


Efficient cold data strorage saves companies money because it fits onto cheaper servers. The servers are cost-friendly because they require less speed and upkeep. As these servers are rarely accessed, they don’t require a lot of power, speed or functionality.

A man using a calculator to review some papers.
Cold data saves money because it stores in cheaper, slower servers.


A cold storage is much slower than a company’s normal servers – that’s a good thing. The sacrifice of speed is double-edged, as the active data is accessed much quicker. This is because there’s less data stored on the active servers. Also, there are fewer pieces of data accessed at once.


A dedicated location boosts organization and simplifies data management. It additionally assists in constructing and maintaining data lineage. Removing cold data from active data streamlines everyday company operations.

Cold data belongs on economical, out-of-the-way servers. Dedicate space specifically for cold data to keep everyday operations fast and flowing. As you continue to grow as an organization, your cold data needs will grow as well. The more you make cold data storage a priority, the higher efficiency your company becomes.

Casey Schmidt – Content Manager and Industry Expert | Canto

Casey is a content management and branding expert who enjoys taking complex subjects and making them easy to understand for readers.