Modular AI Data Centers Take the Lead... Built Faster and More Flexibly

Pre-fabrication at Factories, On-site Assembly
Reduced Time for Design, Construction, and Installation

After pre-building Artificial Intelligence Data Centers (AIDC) in a modular format and then assembling them on-site, Pre-fabricated Modular Data Centers (PMDC) are emerging as a new technology strategy for companies seeking to expand their AIDC capabilities. PMDCs are advantageous because the time required for design and construction is relatively short, and components can be easily swapped, enabling flexible AIDC operations.

According to the IT and telecommunications industry on September 7, LG Uplus signed a memorandum of understanding (MOU) with its partners to establish a PMDC Alliance at the Pyeongchon Mega Center in Anyang, Gyeonggi Province on September 4. PMDCs involve pre-fabricating modules such as Graphics Processing Unit (GPU), Central Processing Unit (CPU) servers, structures, power supplies, and cooling systems at factories, which are then assembled on-site.

Drawing on its experience in data center construction and operation, LG Uplus will define PMDC operational standards and technical requirements, establish business directions, and validate models. GS Engineering & Construction, Xi C&A, Gansam Architects & Partners, and D&O CM will also participate in the PMDC Alliance, each handling their own areas of expertise such as design, construction, and infrastructure building.

Elis Group, which was selected in June as a GPU cloud provider for the 'National AI Data Center Advancement Project,' also plans to implement PMDC technology. During deployment of the latest GPUs from Nvidia—such as the H100 and B200—the company's 'Elis AI PMDC' will be equipped with a high-density power infrastructure and highly efficient cooling systems.

In March, LG CNS unveiled a compact data center called 'AI HAUS,' which can accommodate up to 576 GPUs in a single container. By eliminating the need for a separate building, data center construction can be completed in just six months, allowing for rapid responses to AIDC demand. LG CNS plans to build the 'AI HAUS' on the site of the Busan Global Cloud Data Center.

Global big tech companies have also entered the modular data center (MDC) business—a broader concept that includes PMDCs—relatively early. Global cloud players such as Amazon Web Services (AWS) and Microsoft have unveiled container-type MDCs and are progressing with commercialization. These are mainly aimed at the public sector, such as the U.S. Department of Defense, and are designed for immediate use in areas without computing infrastructure, such as operational or disaster recovery sites.

The increasing number of PMDC adoption and utilization cases is due to the rapid advancement of AI infrastructure, which has exposed the limitations of traditional AIDC construction methods. Conventional data center infrastructure—combining design, construction, installation, and cloud software deployment—typically takes about three to four years. The problem is that as new GPU infrastructure is released annually, the intended GPU technology becomes outdated by the time the AIDC is completed. In contrast, PMDCs require about three months for manufacturing, construction, and installation.

Another reason PMDCs are gaining attention is the increasing power consumption of the latest infrastructure. For instance, Nvidia’s A100 GPU released in 2021 consumes 400 watts (W), but the B200 released in 2024 requires 1,000W—more than double. If the power infrastructure for AIDC is designed for older GPUs, the capacity for new GPUs is inevitably limited. By using PMDCs, modular power infrastructures can be quickly expanded, or the overall scale of the AIDC can be ramped up in a short period.

As the age of agentic AI and Artificial General Intelligence (AGI) begins in earnest, it is expected that the adoption and construction of PMDCs will continue to grow rapidly. Global market research firm Mordor Intelligence forecasts that the global modular data center (MDC) market will increase more than twofold from USD 42.65 billion (about KRW 57 trillion) this year to USD 101.22 billion (about KRW 136 trillion) in 2031. Particularly, PMDCs are projected to account for 62.87% of the market, highlighting their role in driving industry growth.

This content was produced with the assistance of AI translation services.