Cloud data centers are capable of handling higher traffic loads whereas traditional data centers are facing various challenges in terms of confluence of capacity, performance and infrastructure complexity due to the data explosion and rising need for scalability. The traditional incremental approach will no longer offer the scalability to face the challenges that are unavoidable in cloud computing. To overcome the challenges, the transition of data centers involves end-to-end transformation of servers, storage and networks has become a necessity. Cloud data centers support greater degree of standardization, virtualization and automation resulting in high performance and cost optimization. Mid-sized and large data centers are growing considerably attributed to huge cloud storage deployments and build-out of public cloud offerings. Investments are pouring from various vendor segments into the data center markets due to these changes. There is an industry trend where almost all cloud service providers are establishing two or more data centers in high economic and advanced zones near major metropolitan cities. Consequently, cloud data centers are clustering around major internet hubs in the world. Read more at: 

http://www.techrepublic.com/blog/the-enterprise-cloud/cloud-computing-and-the-evolution-of-the-data-center/