The AI industry is turning to prefabricated data centers to meet surging demand

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.