Modularisation: A strategic shift for faster data centre delivery

Global demand for data centres is skyrocketing, driving a fundamental shift in construction methodology.

As cloud adoption, AI workloads, and digital transformation accelerate worldwide, developers face mounting pressure to deliver infrastructure at unprecedented scale.

Traditional construction approaches struggle to keep pace amid skilled labour shortages, rising costs, and sustainability pressures that are reshaping strategies across the industry. In this context, modularisation has emerged as a transformative solution, not just as a building method, but as a strategic supply chain approach to data centre delivery. 

Modular construction involves fabricating key components off-site and then assembling them on-site, enabling projects to be built smarter and faster. By shifting much of the work to controlled factory settings, modularisation allows parallel workflows and repeatable processes that dramatically compress schedules and enhance quality. The approach is gaining traction globally as developers race to meet booming demand without compromising on cost or sustainability.  

Growth drivers: AI, cloud, and hyperscaler demand 

Explosive growth in AI and cloud services is a major catalyst behind the shift toward modular construction. Hyperscale technology companies are investing record capital to expand their data centre infrastructure for next-generation workloads. As John Sammon, Global Program Controls Manager at Google, observes:

Google is spending more than ever on its infrastructure and its backbone... expanding in many new locations. Driven by AI and by this expansion of our programme, we need to manage for change, manage the costs and manage the schedule all at a pace... I haven’t seen previously.

This sentiment is echoed across the industry, cloud providers and social media giants are accelerating build-outs to support artificial intelligence training, big data, and ubiquitous digital services. 

Furthermore, global supply chain complexity and scale require new thinking. As data centre programmes span continents, owners are adopting campus-level strategies - building multiple identical facilities across regions. Modularisation fits perfectly here: standardizsed designs can be replicated and shipped, creating economies of scale. By treating construction as an assembly process, hyperscalers can better manage the enormous volume of equipment and materials needed for their expansion. 

Benefits of modularisation 

While the opportunities are vast, data centre developers face several major challenges that modularisation helps address: Labour shortages have become acute in many regions, from North America’s aging construction workforce to the limited local skilled labour pool in the Gulf countries limited local skilled labour pool.

This often results in project delays or reliance on expensive imported labour. Modularisation mitigates the issue by shifting a significant portion of work to factories, where automation and efficient workflows reduce the amount of on-site labour needed. Fewer workers are required on the construction site, and in some cases, specialist tasks can be centralizsed at the manufacturing facility. 

Speed and being first to market with new capacity is crucial for acquiring customers. Modularisation supercharges project delivery by turning construction into a parallelizsed process. For example, electrical skids, cooling units, and even entire data hall modules can be assembled in factories at the same time that site foundations are laid. This overlap can reduce overall project duration by 30–50% in many cases.  

Cost predictability is a major benefit, and as modular projects rely on pre-designed units, there is less uncertainty in pricing once the modular supplier contracts are in place. Bulk production of identical modules also introduces economies of scale. Linesight has observed that this approach can reduce change orders, a common source of budget inflation, since there’s less on-site improvisation. All these factors contribute to better cost certainty and often lower total cost of ownership over the project life cycle. 

Data centres demand high quality and reliability. Even minor construction defects can have costly repercussions down the line. Modular building improves quality by taking construction into a factory setting with rigorous supervision, automation, and testing. Every module can undergo thorough commissioning tests before it ever ships to site, something that is much harder to do in a one-off site build. Consistent standards and repeatable assembly mean each facility meets a benchmark level of excellence, which is especially valuable when rolling out dozens of similar sites globally. 

Data centre operators increasingly measure the environmental impact of their construction projects as part of overall sustainability metrics. Modular construction inherently generates less waste. For example, steel and cable offcuts can be reused across multiple modules instead of tossed out, and formwork or scaffolding needs are minimal. Fewer material deliveries to site translate to lower transportation emissions and congestion. Overall, modularisation aligns well with corporate ESG commitments by delivering facilities that are not only energy-efficient in operation, but also sustainably built. 

Safer working conditions are the result of reducedless on-site labour, which lowerreduces exposure to weather, heights, and heavy machinery. Factory-based manufacturing allows for controlled, ergonomic, and compliant work environments. Furthermore, having a safer, controlled work environment improves worker welfare. Many Linesight clients also find that modular sites have smaller local environmental footprints – shorter construction intervals mean less noise, dust, and community disturbance. The scalability and flexibility of modular designs allow for easy expansion. Developers can add more modules as needed, making it simpler to scale operations in response to increasing demand. It also allows for quicker adaptation to changes in project scope or design by swapping or modifying modules.