Artificial intelligence (AI) is contributing to unprecedented data center demand. After years of relatively little change, we’ve seen a significant jump in AI usage, with 78 percent of respondents in a 2024 survey saying their organizations now use AI in at least one business function.
AI has nearly endless applications, from machine learning to generative AI, but all these applications come with heavy computing demands. The increased use of AI requires expanded data center capacity, including more edge data centers in addition to hyper scale and enterprise facilities. Existing data centers must be future-ready for not only escalating AI usage but also other potential technological developments.
Traditional construction is often a suboptimal solution to meet demand due to long lead times, significant costs and inflexible footprints. In contrast, modular data centers offer a faster, more flexible response to meet the growing needs of AI and other emerging technologies.
Modular data centers (MDCs) are prefabricated, factory-built units designed for rapid deployment and integration. They come in a variety of sizes and configurations, with all-in-one units that feature everything needed to support IT equipment, including power, cooling and more. Modular data centers are built to interconnect, creating self-contained but highly scalable ecosystems.
The modular approach to building data centers is also known as volumetric construction. With materials and build processes largely standardized and construction being managed by experienced professionals in a controlled indoor setting, the process offers advantages over stick-built construction.
Among other benefits, volumetric or modular construction:
This last advantage makes modular data centers especially strategic for meeting AI-driven demand.
Although the future of AI and other emerging technologies is uncertain, one thing is certain: Data centers must be ready to scale to meet evolving demands. Below, we’ll explore five ways modularity supports the scalability needed to help data centers meet both current and future demand.
Modular data centers take advantage of standardized designs, but that doesn’t mean they are cookie-cutter products. Some manufacturers, like PCX, allow customers to specify data center designs and components that meet their specific needs. Even without this customization, MDCs are, at their core, highly versatile. They are effective for applications such as AI training, edge computing, high-frequency trading, Internet of Things (IoT), media delivery and more. Organizations can also use MDCs as part of a hybrid strategy that leverages cloud for even more flexible deployment options.
Modular data centers are designed with flexibility in mind, allowing them to integrate new technologies needed to support AI and other high-density workloads without requiring extensive retrofitting. This includes, for example, liquid cooling technologies, such as direct-to-chip or immersion cooling. Instead of a complete overhaul of the equipment, MDCs allow for quick and easy reconfigurations and replacements. With their more rigid infrastructure, traditional brick-and-mortar data centers struggle to match this adaptability.
Modularity doesn’t just make scaling easier; it also makes the process more cost-efficient. Standardized modules and construction procedures allow for reliably expedient timelines. When you need to meet demand quickly, modular data centers are a proven solution. Traditional construction is far more prone to delays due to circumstances such as weather or labor shortages.
The efficiency inherent in modularity also makes this a strategic way to support sustainability goals as you scale. Compared to traditional construction, the modular build process involves minimal waste in labor, materials, time and costs. Additionally, modular units support right-sized deployments, which helps organizations avoid resource overbuild and energy waste. Modular data centers also integrate seamlessly with energy-efficient technologies and green power sources.
Expanding data center capacity to meet AI-driven demands often takes organizations to new geographical locations (even if only to fulfill redundancy requirements). Because modular data centers are built in a factory setting and shipped to the site for installation, you can use the same manufacturer across locations, rather than approaching each location as an individual project with different construction companies, costs and timelines. MDCs are also an ideal solution for remote edge deployments, which are critical to support low-latency AI applications close to end users.
Modular data centers unlock the speed, agility and longevity your organization needs in a fast-changing technology landscape. With its proven benefits, modular construction is earning its place as a cornerstone in the foundation for the future of digital infrastructure.
To learn more about modular data centers, check out our interactive infographic and explore the inside of an MDC.