Benefits and Drawbacks of Prefabricated Modules for Data Centers

Overview

The core claim is that total capital cost is roughly equal while schedule can shrink by up to 60%. The material premium for module shells and factory integration is offset by reduced site labour, design and building-shell space. Simple core-and-shell construction costs about $100-150 per ft2 ($1,076-1,614 per m2). Site plan design and engineering can be about 5% of total project expense in traditional builds, and pre-integrated subsystems can save 50% of design and engineering time.

The deployment estimate is about 34 weeks modular versus 88 weeks traditional, concept to commissioning. Table 1 gives 12 to 24 months for traditional builds, while prefabricated can be operational within 8 months or less. In the energy example, a traditional 1 MW data center in St. Louis (50% load, 6 kW/rack, raised floor, chillers with VFDs and economizers) reaches a PUE of about 1.75, while a comparable prefabricated configuration is expected at 1.4 or better, about a 20% lower electricity bill.

Drawbacks include existing building investment, long cable and pipe runs to interior IT rooms, weather and security exposure, cramped servicing, AHJ uncertainty and road transport limits; the cited US transport width limit is 11.6 ft (3.5 m), and wider loads need permits and possibly escorts. On carbon, steel and aluminum produce about half the emissions of concrete, and modules need concrete only for the support pad.

The paper is a vendor's view, its figures rest on the authors' example configurations, and advantages such as equipment-rather-than-building tax treatment depend on jurisdiction.

Key points

1. Prefabricated deployment can be up to 60% faster at approximately the same capital cost.
2. Schedule: about 34 weeks modular versus 88 weeks traditional.
3. Traditional builds take 12-24 months; prefabricated can be operational in 8 months or less.
4. Simple core-and-shell construction costs about $100-150 per ft2 ($1,076-1,614 per m2).
5. St. Louis 1 MW example: traditional PUE about 1.75 versus 1.4 or better prefabricated (about 20% lower electricity bill).
6. Pre-integrated subsystems can save 50% of design and engineering time.
7. US transport width limit cited as 11.6 ft (3.5 m); wider loads need permits.
8. Steel and aluminum produce about half the carbon of concrete.

Using it in design

• Offer a delivery-method option per subsystem (stick-built or prefabricated), defaulting to about 88 and 34 weeks with editable phase durations.
• In the cost model, shift cost from site labour and shell ($/m2) to an equipment premium when prefabrication is chosen, and show the roughly equal total with sensitivity.
• Add site checks for module footprint versus pad, crane access, transport width above 3.5 m and cable/pipe length from outdoor plant modules to the indoor IT room.
• Let factory acceptance test (FAT) credit reduce on-site Level 1-3 commissioning scope.

Who should read it

Owners and project managers choosing between prefabricated and stick-built delivery.

Related standards

• NFPA 70 (NEC)
• UL 2755
• ASHRAE 90.4

Publication details

Authors

Wendy Torell; Dennis Bouley; Scott Neal

Publisher

Schneider Electric

Year

2026

Document number

WP 163

Document language

English

Source type

Manufacturer

Access

Free to read

Licence

Copyright retained; citation only — the publisher’s terms apply to the original document

Citation