That questions depends on how you intend to install the Luminetworx PoE lighting system. If you use a centralized model then yes it will take up more space in the IT room the PoE switches do not put out much heat so minimal additional cooling is needed. IF you use a distributed model then the Luminetworx PoE switches can be installed in closets, plenum spaces or any suitable available space. It really depends on how the system installation is designed although putting all the hardware in a centralized server room make things more convenient the size of the space may dictate a decentralized installation model in order to speed up installation and save on cable costs.