Modular Data Centers Solve AI's Speed-Sustainability Dilemma

Siemens Smart Infrastructure and Delta Electronics have formed a global partnership to revolutionize data center infrastructure through modular, prefabricated power solutions, aiming to cut deployment times by up to 50% while reducing capital expenditures by 20% and carbon emissions by 27%. The collaboration centers on standardized containerized systems-SKIDs and eHouses-that integrate power distribution, uninterruptible power supplies (UPS), batteries, and thermal management technologies, enabling rapid on-site installation and commissioning . This approach addresses surging demand for AI-ready data centers, where operators face pressure to scale capacity quickly and sustainably .

The partnership leverages Delta's expertise in high-efficiency power solutions and Siemens' electrical distribution engineering to create a plug-and-play platform. Jimmy Yiin, Executive Vice President of Global Business Operations at Delta, emphasized that the modular design allows power systems to be built and tested off-site, minimizing on-site labor and mitigating risks from supply chain delays or weather disruptions. Stephan May, CEO of Electrification & Automation at Siemens Smart Infrastructure, added that the collaboration "delivers a customizable solution that drastically cuts time-to-market," enhancing energy efficiency and aligning with customer sustainability goals .

The prefabricated modules also incorporate Building Information Modeling (BIM) and digital twin technology to optimize design, installation, and operational monitoring . By creating virtual models of the power systems, operators can streamline engineering coordination, detect faults early, and standardize deployments across global facilities . This digital integration is critical for managing complex, high-density data centers supporting AI workloads and hyperscale cloud computing .

The partnership targets markets in EMEA and APAC, where data center demand is accelerating due to AI adoption and colocation expansions. Delta's grid-to-chip power design, combined with Siemens' engineering capabilities, positions the companies to capture a growing segment of the infrastructure sector. Analysts note that modular solutions are becoming essential for meeting tight project timelines and addressing skilled labor shortages, particularly for large AI campuses requiring rapid capacity scaling .

Environmental benefits are a key focus, with the optimized layouts reducing concrete usage and construction waste. The modular approach also enables data centers to reclaim valuable white space by housing power equipment in compact external enclosures, improving operational efficiency . This aligns with broader industry trends toward decarbonization, as operators seek to balance growth with sustainability targets.

The agreement underscores a strategic shift in the data center sector toward standardized, factory-built infrastructure. By collaborating with complementary partners, Siemens and Delta aim to address bottlenecks in deployment speed and cost while advancing their roles in the green energy transition. As AI-driven workloads continue to reshape computing demands, the partnership's success could set a new benchmark for modular infrastructure solutions.

According to reports: Delta and Siemens to Complement their Power Solutions to Help Customers Cut Data Center Deployment Time, Costs, and Carbon Emissions https://www.prnewswire.com/news-releases/delta-and-siemens-to-complement-their-power-solutions-to-help-customers-cut-data-center-deployment-time-costs-and-carbon-emissions-302619411.html

: Siemens and Delta Form Partnership to Speed Data ... https://finance.yahoo.com/news/siemens-delta-form-partnership-speed-060000173.html

: Siemens and Delta: Building Greener Data Centres Faster https://datacentremagazine.com/news/siemens-and-delta-building-greener-data-centres-faster

: Siemens + Delta Deliver Plug-and-Play Power to Fast- ... https://dcpulse.com/news/siemens-delta-global-partnership-modular-power-ai-ready-data-centres