The economic mechanism that causes well administered datacenters to exist is clear: there is demand for hosting and a (mostly) competitive market attempting to supply hosting. Poorly administered datacenters have a lower chance of staying in business. But if there was a legal monopoly on datacenters (e.g. only the government could provide hosting, and citizens voted on the leadership of the datacenters), I am not aware of an economic mechanism that would cause the datacenters to satisfy demand efficiently or at all.