In short
- Modular means building data center parts in a factory, testing them there and connecting them on site.
- Power is prefabricated most often: skids, e-houses and switchgear rooms. Then cooling, then white space.
- Reported benefits: energisation in 12–18 months instead of 24–36, and 10–15 % lower cost.
- Fully modular data centers remain a small share of the market; most large campuses prefabricate components inside a conventional shell.
What makes a data center modular
In a conventional build, trades assemble power, cooling and IT space piece by piece on site after the shell is up. In a modular build, those systems are assembled in a factory as complete units, tested under load and shipped. Site work shrinks to foundations, setting the modules and connecting them. The factory and the site work in parallel, which is where the time saving comes from.
Degrees of modular
| Approach | What is prefabricated | Typical use |
|---|---|---|
| Prefabricated components | Power skids, e-houses, cooling skids, pre-cabled rack rows | Most hyperscale and colocation campuses |
| Modular white space | Pods of 1–4 MW with racks, containment and busway | Repeatable campus phases |
| Containerised data center | Everything in ISO-container-sized units | Edge, temporary and remote sites |
| Panelised shell | Roof and wall cassettes | Fast weather-tight halls |
The kit of parts
| Group | Module | What it contains |
|---|---|---|
| Power | Power skid | Transformer, switchgear and UPS on one tested frame |
| Power | E-house | Walk-in MV and LV electrical room, delivered complete |
| Power | Battery container | UPS batteries in a fire-rated, separated enclosure |
| Cooling | Cooling module | Chillers or dry coolers with pumps on a skid |
| Cooling | CDU skid | Liquid cooling distribution; cuts MEP site labour |
| White space | Pod | Racks, containment and busway in 1–4 MW sections |
| White space | Rack rows | Pre-cabled rows rolled into a conventional hall |
| Envelope | Roof and wall cassettes | Panelised shell |
Power first, cooling second, white space last is the usual order of prefabrication. The kit of parts on the home page shows each one.
What the numbers say
| Figure | Source |
|---|---|
| 12–18 months to energisation against 24–36 conventional, about 40 % faster | Datacentres.com, Sep 2026 |
| 10–15 % lower cost counting labour, weather delays and rework | Datacentres.com, Sep 2026 |
| $10.8B forecast revenue for prefabricated modular systems in 2028 | Omdia, via The Register |
| Single-digit percentage adoption of fully modular data centers | IDC, via The Register |
Vendor claims run higher, such as up to 85 % faster deployment for some product lines. Treat them as best cases: the gain depends on how early factory work starts.
Where modular fits best
- Fast capacity at existing sites and at the edge.
- Repeatable campus phases with a standard design.
- Regions with scarce skilled site labour.
- Power plant first, even when the shell is conventional.
Modular helps less on one-off, highly customised buildings, on sites with poor road access, or when the grid connection, not construction, sets the date.
Questions about modular data centers
Is a modular data center the same as a container data center?
Container data centers are one kind of modular data center. Most modular projects use larger, purpose-built skids and pods rather than ISO containers.
Can modular reach hyperscale size?
Yes, in phases. Campuses repeat standard 1–4 MW pods and prefabricated power blocks; Compass Datacenters reports more than 900 MW delivered with standardised factory designs.
Is modular quality better?
Factory conditions, repeatable processes and integrated factory tests usually reduce defects compared with site assembly. Site joints still need careful work and testing.
Why is adoption still small?
Large campuses already standardise and prefabricate components while keeping a conventional shell, so they rarely count as fully modular.
Sources
- Datacentres.com, Sep 2026 (schedule and cost); Omdia and IDC via The Register (market).
- Vendor claims as reported by The Register; Compass Datacenters (standardised delivery).