Your step-by-step handbook for building a prefabricated modular data center
Scalable infrastructure for a data-heavy world
In the past roughly ten years, there has been a noticeable shift in the world of data centers. Primarily, we’re talking about brick-and-mortar structures giving way to prefabricated modular data centers.
One of the main drivers of this transition has been cloud computing. Think Amazon Web Services (AWS) and other such operators building large-scale data centers to support the soaring demand for cloud applications. Or companies building their own enterprise solutions to support their data and software applications. Traditional construction just doesn’t have the speed or scalability required to meet the existing demand for cloud services – with the exponential proliferation of AI, future demand may be even harder to meet.
That’s exactly why we – why you – need prefabricated modular data centers. Data centers that are engineered, fabricated, and tested off-site, usually in a controlled factory setting, while site preparation proceeds simultaneously. You benefit from seamless integrations, lower on-site labour demands, and more than 40% time savings compared to conventional construction.
But investing in prefabricated data centers isn’t just a cost-cutting measure; it is a strategic decision that ensures the future-readiness of your business.
Modular data center manufacturers are strategic partners who help you reinforce your risk management protocols. They offer cost predictability through integrated factories and the promise of scalability for future expansion. Factory construction offers a level of control over production that results in superior data center construction quality. And the modularity of the structure makes it easy when it comes to transportation and agile when it comes to deployment.
Whether you’re looking for an enterprise solution, need an edge data center, or want to set up a colocation data center, prefabricated modular data centers are your friend.
Unlock agility and efficiency with prefabricated data centers
Before we go any further, we must address the most important question: what are prefabricated modular data centers? Prefab modular data centers are like any other data center in application, but they differ in their construction style. They are pre-engineered, prefabricated, and usually standardised structures that house servers and network equipment. They are usually equipped with utilities like power and cooling, serving as an integrated solution for data center needs.
Prefabricated data centers are available in multiple types: container data centers, prefabricated data halls, and prefabricated power and cooling modules. The first, i.e. containerised data centers, are the most common – they bring together prefabricated modules for IT, power, and cooling into standardised modules or enclosures.
Prefabricated data centers may be deployed outdoors, as standalone buildings or indoors, within a larger facility. Sometimes, prefabricated modular data centers are simply a part of a larger system or structure that requires IT, power, and cooling modules to be linked together. This means that servers and networks may be located in one module, while cooling systems are in another, and power infrastructure in a third.
While prefab or modular are the most common ways to describe what we’re talking about, you may also hear the terms mobile, portable, pod, or skid-mounted data centers when people mean prefabricated modular data centers.
In recent years, large internet companies and cloud service providers – collectively referred to as hyperscalers – have been relying on modularity to build data centers at the massive scales that they need. Expandability, replicability, agile deployment, cost savings, and just-in-time delivery are only some of the factors they’re reaping the benefits of.
If you, too, want to jump aboard the prefabricated data center trend, this blog post and the next are your go-to primers on the market for modular data centers, the core features, equipment and layout that typically make up such a space, and power and energy management systems that bring everything together.
The rising popularity of the data center in a box: The market for prefabricated data centers
Schneider Electric claims that roughly 20% of total data center capacity is already being deployed through diverse types of prefabricated modular data centers.
Market research indicates that the global modular data center market earned revenues of about USD 35 billion by the end of 2024. Up until 2030, the market is forecasted to grow at a CAGR of 19%, almost touching USD 100 billion in revenues by the end of the decade.
Colocation is also an important part of the global data center market. In the context of data centers, colocation refers to a service in which businesses can rent space to house their IT infrastructure in a provider’s facility. While the business owns its servers and network equipment, the colocation provider generally offers services like power, cooling and physical security. Not only does this help businesses avoid the complexities of building and maintaining their own data centers, but it also gives them access to the relevant infrastructure and connectivity.
The data center colocation market, including both stick-built and modular data centers, was estimated to be worth USD 51.8 billion at the end of 2020, having grown at a CAGR of 12.4% since 2015.
This rise in colocation services has been an important impetus to the growth of modularity in this space. Because for colocation data center owners or colocation providers, sustainable and profitable growth is only possible with highly efficient resource use. Colocation providers must open and lease data center space as quickly as possible to not only begin to recover the heavy investment required, but also because data centers must operate at about 80% capacity to optimise efficiencies.
The modular, scalable nature of prefabricated data centers allows colocation service providers to start small, monetise early, and scale up simultaneously without disrupting existing operations. In this case, modularity is a key ingredient in the recipe for success in the competitive, fast-paced world of data center management.
Now that you know the basics of what prefabricated data centers are, in part two of this blog post, we’ll dive into what you stand to gain from investing in scalable data centers and what you can expect from modular data center manufacturers.
Building for tomorrow
Why do you need a scalable data center? Why must you partner with a modular data center manufacturer? Especially if you’re a colocation provider.
In a nutshell, the modular nature of prefabricated data centers helps you start earning a return on your investment sooner.
Building massive data centers from scratch or expanding existing facilities is an expensive affair, especially when you construct traditionally, using bricks and mortar. And given the nature of on-site construction, you can’t begin operations while expansion or upgrades are in progress. Going the traditional way is the perfect recipe for delays in project completion and delays in revenue generation. Not to mention the ongoing maintenance costs for the server rooms that are already built but remain unoccupied.
“Pay as you grow” is the alternative model that has gained popularity recently. It involves starting with a small prefabricated modular data center, which you can set up relatively quickly, with a smaller upfront investment, to start generating revenues faster. As revenues stream in from this data center, you can use the services of modular data center manufacturers to continue expansion using replicable, scalable modules. As soon as expansion is complete, the additional modules can also be deployed for use, expanding your capacity. This process can be repeated multiple times as and when market demand calls for it.
The main benefits of scalable, prefabricated, modular data centers
In June 2020, a study was conducted during the DCD>Building at Scale conference. In their responses, 39% of professionals in the data center industry said that data center projects were being deployed in under a year. Another 66% said they were being deployed in under a year and a half. The scale and speed with which new data centers are needed call for the urgent adoption of modular, scalable solutions.
These timelines are a lot shorter than projects proceeded about ten years ago – over two years was the standard timeline then. But given how fast the market is growing, we need to shorten timelines even more. As such, one of the most significant benefits of prefabricated data centers is the increased speed to deployment, vital to meet growing market demand.
Second, an often overlooked advantage of going prefab is the reliability and predictability that comes with off-site fabrication in a factory. In the fast-paced, competitive environment that the current data center landscape is, falling back on processes that are reliable and predictable is an underappreciated strength that you can strategically leverage to scale up quickly and seamlessly.
Repeatable designs, fewer weather-related risks, and fewer labour-related risks are just some of the factors that improve the reliability of prefabricated modular data centers. This reliability is augmented by commissioning, factory acceptance testing, and site acceptance testing. Put together, all these aspects of the off-site and on-site processes take the uncertainty out of fresh construction, expansion, or upgradation plans.
In a competitive landscape, you also have to give sufficient importance to your costs. Working with modular data center manufacturers will mean that you only have to invest in one phase of your project at a time. Once that is deployed and you’ve begun to earn a return on your initial investment through the uptake of server space and the resulting revenue generation, you can reinvest in expanding your data center.
This growth-in-stages approach helps you break down your upfront investment into smaller chunks. It also helps you to be more flexible in your response to changes in the market. On the whole, investing in prefabricated data centers is the ideal route to lowering risk, reducing capital costs, and saving time.
Finally, and most importantly in today’s changing business environment, is sustainability. Prefabricated modular data centers offer benefits in terms of energy efficiency because of the need for uninterruptible power supplies for servers. If a data center isn’t occupied to its optimum capacity (~80%), power losses and equipment inefficiencies will negatively impact your site’s energy efficiency. Modular data centers allow you to construct and expand your facility, keeping in mind the optimum occupancy or usage rate.
Power and energy management in modular data centers
On the note of power supply in data centers, if a data center loses its power supply, the data losses that result from that can have a disastrous effect on your business. That is why it is essential to have power systems with maximum reliability. Simultaneously, from a sustainability perspective, you need to maintain energy efficiency to minimise the footprint of your facility.
Given the complexity of these operations, the industry has developed Data Center Infrastructure Management (DCIM) software tools. DCIMs integrate the different systems in your data center to centralise monitoring, management, and capacity planning. An efficient power and energy management solution is a key component of a good DCIM setup because it determines a data center’s ability to operate reliably with no interruptions. So, when you set up a prefabricated data center, ensuring you have a reliable power system and efficient monitoring tools is key for operational longevity and environmental sustainability.
Prefabricated modular data centers: Custom solutions for optimum efficiency
The growing demand for data is only going to grow faster, especially now with the widespread use of artificial intelligence. As a data center owner or operator, you need to design facilities that not only respond to today’s demand but are also on standby to meet the data requirements of the medium and long term.
The anticipation of future expansion should guide all your design and deployment decisions, be it in how many data centers you invest in or the technologies you rely on to make them a reality.
Modularity, standardisation and off-site fabrication are critical to future-proofing your business. You need intelligent design, efficient technologies and agility in your operations to ensure scalability and speed in your business, all without compromising on data center performance.
From engineering and fabrication to commissioning and lifecycle maintenance, find a modular data center manufacturer who can support you effectively to truly thrive in the industry. Reach out to us today for an expert consultation.