Centralize

Centralize is a verb meaning to bring activities, people, or data under a single authority, location, or system. In organizational and administrative contexts, centralization involves concentrating decision-making power, management functions, or resources at a central point rather than distributing them across multiple units.

It can refer to centralized governance, where a national or central government retains core authority, or to centralized services within an organization, such as a central purchasing office, a shared services center, or a top-down policy framework. Centralization is often contrasted with decentralization, which disperses authority and responsibilities to regional, local, or autonomous units.

In information technology and data management, centralization describes storing data, processing, and control in one or a few central servers or data centers. Centralized systems can simplify data governance, standardize procedures, and reduce duplication, but create single points of failure, impose latency for distant users, and raise concerns about data sovereignty and privacy.

Proponents argue that centralization improves efficiency, consistency, and coordination, while opponents warn of reduced flexibility, slower response to local needs, and greater susceptibility to systemic disruption. Historically, centralization has been used in state planning, corporate governance, and IT architecture, often accompanied by efforts to balance it with selective decentralization to preserve adaptability.

See also decentralization and central planning.