Global Shift: Embracing Prefabrication In Hyperscale Data Centers Across Continents
In a rapidly evolving digital landscape, hyperscale data center construction is reaching unprecedented heights due to increased demand for cloud services, high-quality streaming, social media, and other digital services. The traditional makeup of data centers is changing as efficiency, hybrid network hubs, and prefabricated modular solutions take center stage. The adoption of prefabricated modular data centers is a global trend, and different regions have unique considerations in their approach.
North America: Speed and Stability
In North America, major hyperscalers and colocation providers favour prefabricated modular data center solutions due to their speed and ease of deployment. These solutions stabilize construction schedules amid surging capacity demand. With a record 686.8 MW of net absorption of data center space added in the primary U.S. data center markets, hyperscalers and colo providers leverage proximity and local integrators” presence to deploy solutions swiftly.
EMEA: Efficiency and Sustainability
In the EMEA region, major hyperscalers, including Amazon Web Services, Google, Meta, and Microsoft, are driving the adoption of prefabricated modular data centers. The focus is on efficiency, sustainability, and addressing public concerns about data center resource consumption. Customized prefabricated modules are utilized to reclaim heat for district heating, aligning with growing sustainability initiatives. Standardized designs are used, with occasional modifications for local requirements.
Africa: Emerging Growth
Africa is experiencing significant data center capacity growth, with an expected expansion to 675 MW by 2026. Prefabricated modular data centers have been present since 2008, and adoption is growing as African countries enact data privacy laws. The transition from 2G to 5G and increased data demand in universities drive growth. Rapid deployment of standardized prefabricated solutions helps hyperscalers and colo providers meet speed-to-market goals, but education on successful deployments is essential.
Latin America: Scalability and Appeal
Latin America is emerging as a market for prefabricated modular data centers, driven by major developments from companies like Google and Scala Data Centers. The scalability of prefabricated solutions becomes more appealing due to cost-effectiveness and mitigating risks associated with traditional builds. However, organizations must navigate local codes, jurisdictions, and customize solutions for successful deployment.
Asia-Pacific: Challenges and Infancy
Colocation dominates the Asia-Pacific region, driven by hyperscalers leveraging established colocation data centers. However, prefabricated modular data centers are still in relative infancy due to challenges. Local expertise prefers traditional builds, and supply chain issues, including extended lead times, limit the speed-to-deployment advantages of prefabricated solutions.
Global Outlook: Future-Proofing with Prefabrication
Despite regional variations, the global trend is clear—prefabricated modular data centers are becoming the norm for hyperscalers. The evidence indicates a shift away from traditional data centers as prefabrication offers speed, efficiency, and adaptability, positioning organizations to thrive in the evolving digital landscape.
