As AI becomes a key engine for business growth, data has emerged as a critical asset across all industries. According to PWC, AI could add up to $15.7 trillion to the global economy in 2030 and, unsurprisingly, the world’s governments are ploughing investment into AI, from the Gulf states to the UK. However, the world’s ambition hinges on data centre operators, and expanding capacity is now critical as the surge in AI demand is rapidly outpacing existing infrastructure.
From static infrastructure to agile growth enablers
Traditional data centre development, often large-scale and fixed in location, no longer suits AI’s surging requirements. Instead, operators need to adopt modular, scalable strategies that enable faster rollouts and more efficient use of resources. Prefabricated and modular construction, where components are built off-site in a controlled environment, provides a faster and more efficient route to deployment.
These units can be transported to a designated site and connected quickly, offering businesses swift access to vital infrastructure. Eaton’s modular EPOD, for example, can shave weeks off data centre construction timelines. Unlike conventional on-site construction, modular builds help avoid delays and cost overruns which, in a competitive environment where time to market is critical, creates a significant advantage.
Modular systems also support long-term adaptability, as they can be expanded in phases. This means facilities can scale their capacity incrementally, which is critical when adapting to AI workloads that often spike unpredictably.
The growing shortage of skilled professionals in cloud and AI infrastructure is also a serious concern. However, modular construction provides a practical response by moving work from the building site to the factory, with the added benefit of up to 35% efficiency gains from repeatable manufacturing processes. This approach means organisations can reduce reliance on specialist teams at every site and instead deploy expert talent to where the need is greatest.
Supporting the grid
The unabating demand for emerging technologies means data centres’ energy consumption is set to increase dramatically. Some forecasts predict a sixfold rise over the next decade. Due to this, it is increasingly important to ensure data centres are not only energy-intensive, but also energy-intelligent.
Achieving this requires integrating systems such as grid-interactive uninterruptible power supplies (UPS), battery energy storage, and intelligent energy management platforms; these facilities can function as Distributed Energy Resources (DERs). Together, they enable data centres to store surplus energy during periods of low demand and release it back into the grid during peaks, helping
Sustainable infrastructure for a greener future
Environmental sustainability has become a fundamental consideration in the development of digital infrastructure. For example, the EU has imposed legislation that requires data centres to report their key performance indicators on energy and sustainability performance. With increasing pressure to reduce emissions and operate more responsibly, data centre construction must now go beyond efficiency and performance to actively support long-term environmental goals. This is where modular construction presents a powerful advantage, offering far greater control over the entire lifecycle of each component involved.
By centralising the manufacturing process, organisations can more easily monitor emissions, select greener materials, and reduce waste. Every stage, from design to deployment, becomes more transparent and measurable, making it easier to track and minimise environmental impact.
Prefabricated modular designs also allow sustainable practices to be applied consistently across projects. Once a low-impact material or process has been developed, it can be implemented across all future builds without needing to reinvent the approach each time. Additionally, the fact that most manufacturing is done at a single site reduces the need for transporting materials and personnel over long distances. This not only cuts costs, but also significantly lowers Scope 3 emissions.
Meeting AI’s demands responsibly
Artificial intelligence is accelerating change across nearly every sector in every country, and with that comes a sharp rise in demand for fast, scalable and reliable infrastructure. To keep pace with this digital momentum, businesses need to ensure they are not only investing in the right technologies but also building the foundations that can support AI’s growth in a sustainable, forward-thinking way.
Embracing modular strategies allows data centres to grow alongside AI with the speed and adaptability needed to meet rising demand. These strategies also help tackle broader challenges such as the shortage of skilled workers and increasing energy needs, while actively contributing to UN sustainability goals.
Furthermore, as more data centres are deployed across the globe, their interaction with wider power systems becomes increasingly important. These facilities must not only connect to the grid but do so in a way that strengthens it.
Juan Castano Colina
Juan Castano Colina is EMEA Data Centre & IT Segment Leader at Eaton. A senior executive with 15+ years in digital transformation, strategy, and commercial operations within TMT, Juan advises start-ups on scale-up growth, with a focus on blockchain, Web3, and tokenizing Real-World Assets (RWA).
