Modular Data Centers Address the Challenge of Balancing AI Performance and Environmental Responsibility

Siemens Smart Infrastructure and Delta Electronics have entered into a worldwide collaboration to transform data center infrastructure by introducing modular, pre-assembled power solutions. Their goal is to reduce deployment durations by as much as half while

. This partnership is built around standardized container-based systems—SKIDs and eHouses—that combine power distribution, UPS, batteries, and thermal management into integrated units, allowing for swift installation and commissioning at the site. This strategy meets the rising need for AI-capable data centers, where operators must expand capacity rapidly and sustainably.

The alliance brings together Delta’s proficiency in high-efficiency power technologies with Siemens’ expertise in electrical distribution, resulting in a ready-to-use platform.

that the modular setup enables off-site assembly and testing of power systems, which reduces the need for on-site labor and lessens risks from supply chain issues or adverse weather. Stephan May, CEO of Electrification & Automation at Siemens Smart Infrastructure, noted that this partnership "provides a flexible solution that significantly shortens time-to-market," boosts energy efficiency, and supports customers’ sustainability objectives.

The pre-assembled modules also utilize Building Information Modeling (BIM) and digital twin technologies to enhance design, installation, and operational oversight. By generating digital replicas of the power systems, operators can improve engineering coordination, identify problems early, and standardize deployments across multiple global sites. This digital approach is vital for managing the complexity of high-density data centers that support AI and large-scale cloud computing.

The collaboration is focused on EMEA and APAC regions, where the need for data centers is surging due to AI integration and colocation growth. Delta’s end-to-end power architecture, together with Siemens’ engineering strengths, positions both companies to capture a larger share of the infrastructure market. Industry experts point out that modular solutions are increasingly necessary to meet strict project deadlines and address shortages of skilled workers, especially for large-scale AI campuses that require fast expansion.

Environmental considerations are central to the initiative, as the optimized designs help decrease concrete consumption and construction waste. The modular system also allows data centers to reclaim valuable interior space by placing power equipment in compact outdoor units, thereby improving operational performance.

, as operators strive to balance expansion with environmental commitments.

This agreement highlights a significant move in the data center industry toward standardized, factory-assembled infrastructure. By working with complementary partners, Siemens and Delta seek to overcome challenges related to deployment speed and expenses, while also advancing their contributions to the clean energy transition. As AI-driven computing continues to evolve, the success of this partnership could establish a new standard for modular infrastructure solutions.

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