Why Choose Modular Construction for Your Data Center Colocation Project?


A business person stands in a data center with their arms crossed while a tech works in the background

Like all types of data centers, colocation providers are struggling to keep up with demand. It’s a great problem to have but a problem, nonetheless, that requires a solution. Modular data centers are a viable option for colo providers to consider because they reduce deployment time, lower costs, increase quality and reliability, enable facilities to scale and even mitigate environmental impact.

Why the increased demand for colocation facilities?

The colocation market has been expanding and is expected to continue growing over the next five years. What’s driving this demand? Here are some of the major trends we’re seeing:

  • Edge computing: A growing need for edge computing is making colocation providers outside of primary data center markets even more valuable. The need for edge computing is being driven by the rise in internet of things devices, data generation and distributed workforce models.
  • High-performance computing: We’ve also seen an increasing emphasis on high-performance computing. This level of computing requires IT infrastructure that companies may not be able to provide in their own facilities, making colocation a practical solution.
  • Hybrid cloud: Exploding hybrid cloud adoption requires somewhere for companies to locate IT infrastructure for private cloud and other, lower priority workloads. Colocation facilities are a great option for hosting the data and applications companies need or prefer to keep out of the public cloud. 

Why should colo providers go modular? 

There are several reasons modular data centers are a strategic solution for colo providers. Prefabrication and testing in a controlled environment allow you to maximize efficiency throughout your project and achieve a high-quality, scalable solution. 


  • Reduce deployment time.

Whether you’re building a new facility or expanding an existing one, you can get to the finish line faster when you use modular construction instead of going with a traditional stick-built model. With modular data centers, the majority of the work is completed off-site, eliminating delays that can occur with adverse weather and coordination of many trades. Units arrive pretested and simpler to install and place into service.

  • Lower costs.

The discipline and control around the manufacturing process for modular data centers also means you can typically complete your project for a lower cost. In fact, a conservative estimate is that a modular data center can cost 10-20 percent less than an equivalent stick-built construction project. Modular data centers reduce total cost of ownership because they are cost-effective to operate. They’re compact and rightsized for efficiency at every level.

  • Enhance quality and reliability.

When your data center systems are manufactured and tested in a controlled facility, enhanced quality and reliability become a direct result. This is particularly true if the manufacturer adheres to stringent processes, such as those established in ISO9001 and in Advanced Product Quality Planning (APQP). Third-party Underwriters Laboratories certifications provide further, formal documentation that the solutions have been built in accordance with the design. Not all manufacturers are equally committed to quality, so make sure you choose the right modular construction partner for your colo project.

  • Scale efficiently.

Traditional data center construction projects often yield designs with excess capacity because colo providers oversize as a means of protecting against the dynamic and unknown future needs of their customers. Modular data centers, on the other hand, allow you to right-size your data center capacity for your current needs and scale as needed by adding additional modular units in the future. These units can be installed inside an existing facility on skids, or can even be placed outside in a prefabricated enclosure. 

  • Reduce your environmental impact.

The U.S. government urges companies to choose a colocation facility that prioritizes sustainability. As this becomes an increasing concern in the industry, colo providers must be aware that modular data centers can help them achieve a smaller environmental footprint. The manufacturing process and efficiency by design of modular data centers make them a greener option with a lower power usage effectiveness (PUE) rating in most cases than stick-built facilities. 

Go modular with PCX.

Colo providers should seriously consider modular data centers over a traditional stick-built facility if they want to take advantage of all the benefits above. Want to learn more about this topic? Check out The Complete Guide to Modular Colocation Data Centers.


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