demand as it occurs. The use of PMDCs significantly limits the risks associated with overbuilding or underbuilding data center capacity.  

One of the less discussed but increasingly more important benefits of PMDC construction is the impact on sustainability. Sustainability has become a top-of-mind decision-making criterion for data center owners and operators. Customers, investors and regulators are also demanding more action from the data center industry on sustainability due to the industry’s anticipated growth. Historically, data center owners and operators have focused on reducing scope 1 and scope 2 greenhouse gas (GHG) emissions generated directly by operating data centers and indirectly through electricity purchases. However, scope 3 GHG emissions, indirect emissions from supply-chain operations, drive most data-center-related GHG emissions.

PMDC data center construction reduces scope 3 GHG emissions for a data center owner or operator, consuming less than half the water and generating less than half the waste of a stick-built data center facility. The controlled construction environment allows materials to be used more efficiently, and they don’t need to be transported to and from construction sites. In addition, PMDC construction relies more heavily on steel than concrete, in contrast to stick-built facilities, and concrete carries a large amount of embodied carbon. Lastly, PMDC assets can be reused, should they no longer be needed by the original owner, or recycled into other materials at the end of life.

Shorter ROI and lower TCO

The cost associated with PMDC deployments is often misunderstood. End users tend to believe PMDCs carry a higher price tag than stick-built facilities, while PMDC suppliers tend to over-market cost savings associated with them. In reality, PMDCs cost about the same as stick-built facilities, so capital expenditure (CAPEX) savings are not a major driver of PMDC deployments. The cost benefits of a PMDC deployment become more apparent when considering the return on investment (ROI) and operational expenditure (OPEX).

PMDCs begin their operational lives months, even up to a year, sooner than stick-built alternatives due to their speed-to-deployment advantage. Thus, a PMDC asset likely contributes to revenue generation months ahead of when a stick-built facility would, shortening a PMDC owner’s ROI. Because PMDC infrastructure designs are so tightly coupled, they are almost always designed to operate more efficiently than stick-built facilities. This efficiency reduces the cost—and environmental burden—of energy losses associated with less efficient power or cooling designs. With lower operating costs and shorter ROI, PMDCs boast a lower total cost of ownership (TCO) relative to stick-built facilities.

Overcoming today’s data center construction challenges

The last two years have dramatically altered the data center landscape, accelerating years of digital transformation to months, leaving the data center industry playing catch-up. The challenges of COVID lockdowns, supply-chain disruptions, and technology transitions have limited the new construction and enterprise modernization needed for sustainable data center growth. The key benefits of deploying PMDCs—accelerated speed to deployment, scalable and repeatable designs, and lower scope 3 GHG emissions—are a compelling response to today’s challenges. Better yet, while some might think these benefits come at a cost, PMDCs require a similar CAPEX to that of stick-built facilities but have a lower OPEX, driving a favorable TCO.

PMDC construction is set to become increasingly common, as enterprises and governments deploy all-in-one PMDC solutions for modernizing on-premises needs, and cloud and colocation service providers use a combination of IT and physical infrastructure modules to utilize stranded space and power, and to build and scale data centers of tens of MWs. PMDC suppliers, particularly DCPI vendors and system integrators, should anticipate and plan for the growing demand for PMDCs. Enterprises, cloud and colocation service providers that are struggling to modernize infrastructure and right-size data center capacity should look no further than PMDCs to help them navigate today’s challenging data center construction environment.