Digital transformation is highly dependent on data centers as the backbone of our technology infrastructure. Without them, the current technological ecosystem would not exist. The energy crisis is an urgent concern that requires attention, including the adoption of renewable energy sources to improve global efficiency, Taking into account sustainability and economical land use in data centre locations.
The energy demands of these centers are enormous and are expected to increase with the adoption of emerging technologies such as artificial intelligence (AI). For this reason, the industry faces increasing pressure from local communities and governments to reduce their carbon footprint and environmental impact. This raises the question of what are the challenges and opportunities?
Modular Data Centers: A Smart Solution
In response to the lack of space, land cost and climate control crisis in the data center industry, a smarter solution emerges: prefab modular data centers.
According to Schneider Electric, modular data centers represent an innovative solution for installing IT equipment and critical power and cooling infrastructure in spaces not originally designed for such purposes. These structures are portable installations equipped with ready-to-use hardware products designed to maximize space utilization. They can be deployed quickly and easily scaled, making them suitable for areas with limited space or for reusing urban or industrial facilities. Although these centres have been on the market for several years, technological advances and new designs have redefined their basic features, simplifying the design and construction process.
Increasing land cost
The availability and cost of land are obstacles that can impact the development of the data center industry. With the growing demand for data-intensive technologies like AI and machine learning (ML), the need to build more data centers is evident.
McKinsey & Company reported a substantial increase in data center agreements, reaching a combined value of $48 billion by 2021. However, rising land prices and operational financing challenges, exacerbated by rising interest rates, are forcing companies to look for alternative locations and ingenious solutions for data center construction.
The importance of location
Companies have built data centers in urban and suburban locations, focusing on low latency and network proximity for end users, thus ensuring 24/7 accessibility. However, since 2021, there has been a noticeable shift from congested cities to more rural locations.
This trend is in line with the increase of remote work and population movements to smaller communities, driven by the search for desirable locations with lower housing costs. The arrival of 5G and edge computing (EDGE) further facilitates the transfer of processing power to these less populated areas.
Towards a sustainable future
The prefabricated modular solution not only addresses space constraints, land costs and climate control issues, but is also attractive to investors. The modular data center’s design for connection and use ensures operational readiness in just six to nine months, reducing deployment time by almost 50% compared to traditional buildings.
Their scalability makes them suitable for large companies as well as small and medium-sized enterprises, offering a solution optimized in terms of capital. The ability to scale power on demand extends its applicability to industrial sectors, governments and emerging economies, bringing processing capabilities closer to users.
“At Schneider Electric we continue to invest in our modular data center offerings and the evolution of EcoStruxure IT to provide more capacity, flexibility and deployment options for companies and placement facilities worldwide. This helps to meet the challenges of building modular data centers, ensuring a more sustainable and efficient future for the industry,” said Martin Jimenez, LATAM Modular Data Centers Sales Manager at Schneider Electric.
Data centers are critical to global technology infrastructure, and the transition to more sustainable and efficient solutions is crucial. Adopting prefabricated modular data centers represents a smart response to the challenges of space, cost and climate control, offering flexibility and scalability.
