The AI future we need starts with the data centres we build

The conversation around data centres is no longer novel. Beyond discussing their benefits or their role in enabling the UK's AI ambitions, the focus has shifted to industry ensuring it can deliver the data centre capacity the country needs. 

Achieving this involves several priorities. One is ensuring capacity is delivered where it is needed most. Another is protecting the UK's progress on environmental goals. For data centres, this means striking a careful balance between growth and environmental impact.

One route forward is to reconsider what a data centre needs to be. The common view holds that they must be large, fixed builds with high upfront costs and long development timelines. But there is now an opportunity to move away from that format and towards modular facilities which offer more flexibility. These can adapt to customer needs and local infrastructure while placing less strain on the grid and the environment.

This approach allows providers to move at the pace of demand. It also opens up greater potential for innovation and commercial success, while encouraging the use of more responsible materials and construction methods.

Delivering capacity at pace

As the capabilities of AI increases, and understanding of its offering grows, so will demand for fast and reliable access to it. To effectively respond, operators therefore need to develop and deliver data centres when and where they are needed. Prefabricated or modular systems provide an answer to this. For these systems, components are manufactured in controlled environments off-site, allowing for high-precision production before being delivered and connected at the final location.

Unlike traditional, on-site construction methods, modular approaches avoid many of the delays that typically slow down builds. With fewer disruptions, the financial benefits of prefabrication are maximised, particularly when project delays can be so costly. They also allow operators to expand their reach quickly without causing their carbon footprint to rise at the same rate. 

Through centralised production, businesses gain greater oversight of the life cycle and emissions of each component. In turn, this allows for the selection of more sustainable materials and processes, ensuring consistent improvements can be implemented across all projects. Additionally, having a single manufacturing hub reduces the need for extensive transport of people and goods, cutting logistics costs and lowering Scope 3 emissions.

Integrating flexible energy systems and storage technologies also allows for operators to better use renewable energy, which is inherently intermittent, helping to support progress towards net zero goals and reducing carbon emissions.

Becoming a grid partner

As is widely known, data centres place significant demand on the energy grid, with forecasts suggesting energy usage could increase sixfold over the next decade. This challenge cannot be ignored, and instead, infrastructure must evolve to support the increasing load imposed by new facilities.

Crucially, data centres must move towards becoming net contributors to the stability of the grid. When combined with on-site renewables and advanced technologies such as grid-interactive UPS systems, battery storage, and intelligent energy management platforms, data centres can operate as Distributed Energy Resources (DERs). This setup enables them to either draw or return energy to the grid as and when is needed, helping to balance supply and demand without compromising operations. In turn, this reduces pressure on the grid and can even open up new revenue opportunities.

Maximising your workforce

Modular data centres also help address the concerning shortage of skilled professionals in cloud computing and AI. They provide 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.

Additionally, modular systems support scalability and long-term adaptability, as they can be expanded in phases. This means facilities can expand their capacity incrementally, which is critical when adapting to AI workloads that often spike unpredictably. 

Delivering an AI-powered future

As AI reshapes the digital landscape, operators must be ready to support the rapid technological change. Modular data centres offer the flexibility and speed needed to scale efficiently and support evolving workloads.

Challenges remain, but the benefits of prefabrication provide a solid foundation to meet them. Faster deployment and consistent build quality help organisations grow without being held back by labour shortages or supply chain issues. At the same time, modular designs enable integration of energy-efficient systems and sustainable practices, helping data centres contribute to a more stable and lower-carbon grid.

By reimagining data centres as intelligent, connected systems rather than static infrastructure, we can ensure they play an active role in the broader energy ecosystem. Their impact on grid stability, sustainability and economic progress will be essential as AI adoption accelerates.

Juan Colina, EMEA Data Centre & IT Segment Leader for Eaton’s Europe, Middle East, and Africa region (EMEA). He is responsible for defining and executing a strong strategy that will support our future growth and success within these sectors