Rethinking Data Center Design

As the demand for artificial intelligence (AI), machine learning (ML), and high-performance computing (HPC) infrastructure accelerates, data center design is undergoing a profound shift. Traditional data centers, with their long construction timelines and inflexible layouts, are increasingly being challenged by a new approach: modularization.

Modular data center solutions are transforming how facilities are designed and deployed to meet the demands of the AI era. These pre-engineered units, equipped with integrated power, cooling, and IT systems, enable rapid scalability and precise alignment with application-specific requirements—regardless of geographic boundaries.

The Proven Power of Prefabrication

Prefabricated building structures have been successfully used in countless industries for decades, from military bases and hospitals to schools and housing. In the world of critical infrastructure, the case for prefabrication is even more compelling. Prefab systems offer speed, consistency, repeatability, and quality—all essential in today’s high-stakes digital economy.

In data centers, the modular concept isn’t new. Leading edge data center companies have long used prefabricated rooms or integrated equipment enclosures for power and cooling systems. The modules being used today share a few common characteristics:

• They often come in large quantities per site.
• Each unit houses dense, interconnected, and heavy equipment.
• Modules are typically incorporated into outdoor or perimeter spaces.
• Each module represents a standalone system with factory integration.
• Units are rugged enough to be transported fully-built without risk of damage.

The benefits are well-documented: improved build quality, faster deployments, reduced reliance on skilled labor at the job site, and better control over cost and timeline.

Why White Space Has Lagged Behind—Until Now

Interestingly, one important element of the data center has historically resisted modularization: the white space, or the data halls themselves. Why? Unlike electric rooms, white space systems (racks, containment, conveyance, and power distribution) have traditionally been:

• Lightweight and not densely packed, with an average power per rack at 10kW. When higher rack densities were required, it was handled with supplemental cooling technologies like rear door cooling.
• Spread over a larger footprint, which made them less conducive to containerized unitization.
• Highly customized and tenant-specific, especially in colocation facilities.
• Assembled onsite to accommodate changing design or equipment decisions.

There has been little urgency to reimagine how white space is built because IT loads (pre-AI) grew at a manageable pace, and heat sink advances within the chassis enabled air cooling to extend its dominance. With no incentive to change, innovation in white space was a low priority.

The AI Effect: What’s Changed?

The rise of AI infrastructure has fundamentally altered the equation. Hyperscalers and AI infrastructure firms are pushing power densities higher than ever before. GPU clusters demand extreme compute density, advanced cooling systems, and robust network fabrics. All of this is placing enormous stress on traditional data center designs.

Let’s take a closer look at what has changed.

• Liquid cooling becomes standard: Heavy water piping systems—once considered exotic—are now a necessity in AI white spaces. These systems, along with cold plates or direct-to-chip cooling, rear door heat exchangers, and immersion systems, require stronger structural supports and more pre-integration and planning in parallel with the IT planning.
• Higher power demands: Busways are bigger, and power whips are more numerous per rack. Rack densities often exceed 100kW. These loads were never part of the traditional white space playbook.
• Network complexity: GPUs need low-latency, high-bandwidth fabrics. This demand drives up the volume and complexity of cabling and network equipment, which in turn requires new approaches to design and deployment.
• Containment with load-bearing functions: Modern containment systems aren’t just airflow control devices—they’re increasingly being engineered to support power, cooling, and cabling infrastructure.
• Smaller PODs and higher capacity: AI clusters are dense enough that full compute capacity can be achieved in compact layouts—perfect for modularization.

With these conditions in place, the logic of modularizing the white space is stronger than ever. High-density white space modules—assembled, integrated, and tested in a factory—can now be transported and deployed cost effectively, much like traditional electrical or mechanical modules.

Labor Pressures Are Driving Change

Another major driver for modularization is labor. Across North America, the construction industry is experiencing:

• Skilled labor shortages: Talent can be tough to find, especially in high-demand markets where data center demand is booming.
• Extended schedules: Projects that once took 12–18 months now stretch to 24 months or more.
• Rising costs: Overtime, travel, and recruiting add major line items to project budgets.
• Quality concerns: A growing number of inexperienced subcontractors are contributing to rework and missed deadlines.

Modular construction addresses these pain points directly. By shifting assembly and testing to the factory, many on-site variables are eliminated. This approach enables data centers to be deployed more predictably and with a higher standard of quality and scale.

The Hyperscaler-Colo Divide

Many colocation providers remain committed to designing general-purpose facilities that can accommodate a wide range of rack power densities and customer applications. They may hesitate to build highly specialized AI-ready spaces for fear of narrowing their tenant pool.

But this conservatism is creating a market gap. Hyperscalers—who often require customized high-density white space—can’t always get what they need from colocation providers. Why?

• Vacancies are low, and most new builds are already pre-leased.
• Colo firms are reluctant to commit to specific designs without guaranteed tenancy.
• Distributed AI use cases, like edge inference, require smaller footprints that aren’t always available in large, monolithic data centers.

Modular solutions offer a way out of this impasse. By designing and deploying small-footprint, high-density, factory-built PODs, hyperscalers and neocloud platforms can achieve rapid time-to-capacity without relying on slower, more rigid colo construction cycles.

Customer and Application First Approach to Modular

To realize the benefits of modular data center infrastructure fully, choose a solution provider that offers:

• Vendor-neutral philosophy: supports a wide range of rack designs, power densities, and cooling technologies—engineered from the application layer outward, integrating IT equipment, infrastructure, and enclosure as one cohesive system.
• Scalability: easily expands with demand, whether deploying a single POD or scaling across multiple sites.
• Sustainability: leverages energy-efficient materials and systems to support environmental and ESG goals.
• Ruggedized construction: built to withstand transport and rapid deployment without compromising performance or durability.
• Pre-tested systems: factory-assembled and validated by certified technicians to minimize on-site commissioning time and risk.
• Safety-centric design: separates IT white space construction from high-voltage electrical work to enhance site safety and project efficiency.
• Operational support: delivers post-deployment services including monitoring, maintenance, and lifecycle management for long-term reliability and performance.

Partnering with a provider that combines these capabilities with end-to-end service ensures faster deployment, greater resilience, and operational peace of mind throughout the data center lifecycle.

Looking Ahead: Modular White Space Is No Longer Optional

With AI reshaping the IT landscape and labor challenges growing more acute, modular white space isn’t a niche idea—it’s fast becoming a strategic necessity. Edge sites, neoclouds, inference clusters, and hyperscale GPU farms all stand to benefit from the speed, repeatability, and density that modular data centers offer. Compu Dynamics Modular (CDM) is uniquely positioned to deliver these solutions today—at scale.