back
Get SIGNAL/NOISE in your inbox daily

The rapid growth of artificial intelligence is fueling unprecedented demand for data center capacity, leading major manufacturers to expand their production facilities to meet market needs.

Market dynamics and expansion: Schneider Electric has significantly enlarged its Barcelona prefabricated data center factory to address surging customer demand for high-compute workload facilities.

  • The facility has grown from 75,000 to 130,000 square feet, effectively doubling its production capabilities
  • The expansion enables increased output of both modular data centers and prefabricated power modules
  • The Barcelona facility, located in Saint Boi de Llobregat, serves as Schneider’s largest European manufacturing hub for its ExoStruxure modular data centers

Industry projections and economic impact: Market analysis indicates substantial growth potential in the prefabricated data center sector, driven largely by AI development.

  • Omdia research forecasts global prefabricated modular data center system sales will reach $8.6 billion by 2027
  • PWC Global estimates AI technology could contribute up to $15.7 trillion to the global economy by 2030
  • The expansion positions Schneider to capitalize on this projected market growth while strengthening European supply chains

Operational advantages: Prefabricated modular data centers offer significant benefits in terms of efficiency, sustainability, and deployment speed.

  • These facilities can be designed and made operational in as little as 24 weeks
  • The modular approach reduces waste and optimizes production processes
  • The design helps minimize embedded carbon within the data center space

Strategic partnerships: Major industry collaborations are emerging to meet growing demand for data center infrastructure.

  • Schneider Electric has entered a $3 billion multi-year agreement with Compass Datacenters
  • The partnership aims to integrate supply chains and scale up manufacturing of prefabricated modular data centers
  • This collaboration represents a significant investment in meeting future data center needs

Market implications: The expansion of prefabricated data center manufacturing capacity suggests a shift toward more standardized, scalable approaches to meeting computing infrastructure needs, while highlighting the growing influence of AI workloads on data center design and deployment strategies.

Recent Stories

Oct 17, 2025

DOE fusion roadmap targets 2030s commercial deployment as AI drives $9B investment

The Department of Energy has released a new roadmap targeting commercial-scale fusion power deployment by the mid-2030s, though the plan lacks specific funding commitments and relies on scientific breakthroughs that have eluded researchers for decades. The strategy emphasizes public-private partnerships and positions AI as both a research tool and motivation for developing fusion energy to meet data centers' growing electricity demands. The big picture: The DOE's roadmap aims to "deliver the public infrastructure that supports the fusion private sector scale up in the 2030s," but acknowledges it cannot commit to specific funding levels and remains subject to Congressional appropriations. Why...

Oct 17, 2025

Tying it all together: Credo’s purple cables power the $4B AI data center boom

Credo, a Silicon Valley semiconductor company specializing in data center cables and chips, has seen its stock price more than double this year to $143.61, following a 245% surge in 2024. The company's signature purple cables, which cost between $300-$500 each, have become essential infrastructure for AI data centers, positioning Credo to capitalize on the trillion-dollar AI infrastructure expansion as hyperscalers like Amazon, Microsoft, and Elon Musk's xAI rapidly build out massive computing facilities. What you should know: Credo's active electrical cables (AECs) are becoming indispensable for connecting the massive GPU clusters required for AI training and inference. The company...

Oct 17, 2025

Vatican launches Latin American AI network for human development

The Vatican hosted a two-day conference bringing together 50 global experts to explore how artificial intelligence can advance peace, social justice, and human development. The event launched the Latin American AI Network for Integral Human Development and established principles for ethical AI governance that prioritize human dignity over technological advancement. What you should know: The Pontifical Academy of Social Sciences, the Vatican's research body for social issues, organized the "Digital Rerum Novarum" conference on October 16-17, combining academic research with practical AI applications. Participants included leading experts from MIT, Microsoft, Columbia University, the UN, and major European institutions. The conference...