June 26, 2025 In Butler Manufacturing, Company News

Data Center Construction: What the Future Holds

Trends to watch in data center construction for 2025 and beyond

TL;DR

This article explores emerging trends shaping the future of data center construction.

You’ll learn:

Why data center construction is booming and its growing share of the U.S. economy
How modular construction solves common challenges in remote or complex job sites
Innovative approaches to energy efficiency, including in-row cooling, immersion cooling, and ambient air systems
The role of insulation, materials, and sustainable design in next-generation data centers
How builders are integrating security and scalability into modern data center infrastructure

1 %

of U.S. GDP in Q1 2025

50 %

faster with modular builds

6 – 12 %

of U.S. power by 2028

Why the Boom?

Data centers are basically warehouses that store information instead of things. And they represent a large and growing share of today’s commercial and industrial construction projects:

Data centers currently account for about a third of all new office construction in the U.S.
That share is expected to increase to 40 percent by 2030.
In the first quarter of 2025, data center construction accounted for fully 1 percent of the nation’s entire gross domestic product, according to a report by the Apollo Academy.

The main factors behind this growth phenomenon are twofold: The dramatic increase in cloud computing and artificial intelligence (AI), both of which require vast amounts of data storage capacity.

With this trend in mind, future data center construction will need to prioritize:

Scalability

Sustainability

Resilience

Modular Construction: The Flexible Future of Data Centers

Modular construction involves prefabricated units that are assembled onsite. Modular data centers can include nearly all the systems required for a structure, such as electrical, HVAC, and plumbing. They can also include meeting rooms and office space.

Onsite headaches they eliminate

As with all construction projects, building a data center entirely onsite can pose difficult challenges, such as:

Bad weather slowing or halting production
Treacherous terrain aggravating safety risks
Difficulty in finding skilled local contractors and workers
Supply chain issues, especially in remote areas
Permitting and zoning issues

Factory-built advantages

Modular construction offers effective solutions to these problems. The modular units are typically fabricated in a controlled factory environment, which provides several benefits:

Modular units can be produced much faster than construction onsite.
Production can proceed in all weather conditions.
Difficulties finding local contractors and workers are avoided.
Materials can be stored nearby, eliminating supply chain risks.
Production schedules are more predictable.
The factory setting enhances worker safety.

Energy-Efficient Systems

Since the assets stored in data centers are digital information, two features become paramount in their design: a climate-controlled environment and reliable electricity.

It’s no surprise that data centers consume an astonishing amount of energy; in 2023 data centers accounted for 4.4 percent of electricity usage in the United States, according to the Department of Energy. That number is expected to rise to between 6.7 and 12 percent by 2028. So, energy efficiency will be a top priority for future data center construction.

Here are some of the ways future construction can maximize efficiency:

✔ Effective Insulation

Good insulation is important for all structures; for data centers, it is critical. Aerogels and closed-cell insulation provide the thermal resistance that data centers demand, while sheep wool and hempcrete offer eco-friendly alternatives.

✔ In-Row Cooling Units

Data centers typically house multiple rows of servers, each of which generates significant amounts of heat. In-row cooling mitigates heat directly at its source, reducing the need for more expensive central cooling.

✔ Aisle Separation

Cooling requirements are usually limited to the server racks themselves. By erecting curtains to separate these racks from surrounding areas, less energy is consumed, enhancing efficiency.

✔ Immersion Cooling

Next-generation chips operate at 400 W, making cooling even more pressing. One solution is to house each unit in a dielectric-coolant tank that removes heat while insulating the unit from electricity loss. A coolant distribution unit circulates the fluid through a water-cooled plate heat exchanger.

✔ Direct-to-Chip Cooling

A cold plate with coolant channels is attached to the heat-generating areas of the server. The heated coolant is passed through a heat exchanger or expelled.

✔ Using Ambient Air

When outside temperatures are low, it makes no sense to expend unnecessary energy cooling the data-center interior (often while simultaneously heating office spaces). Smart systems use ambient air whenever conditions allow.

Future-Proofing

As demand for data centers continues to grow, businesses and builders will be confronted with the need to expand. All design choices should be made with this in mind. That means:

Flexible floor plans
Expandable power systems
Modular cooling systems

The demand for data center expansions will make scalability an important feature. Modular units, being uniform in design, can readily accommodate phased expansions.

The innovations noted here are a small example of the advances that occur constantly in the construction field. For data centers, as with all projects, it’s wise to keep an eye on new developments that enhance efficiency and lower costs.

FAQ

Q: Why is data center construction growing so quickly?

A: The surge is driven by rising demand for cloud computing and AI, both of which require massive amounts of secure, climate-controlled data storage.

Q: What is modular data center construction?

A: Modular construction uses prefabricated units built offsite and assembled onsite. It speeds up construction, improves safety, and allows for easier scalability and deployment in remote areas.

Q: How do data centers manage their massive energy demands?

A: Through innovative cooling strategies like immersion cooling, in-row cooling, direct-to-chip cooling, and by using ambient air when conditions allow. Advanced insulation and energy-efficient designs are also critical.

Q: What are the most important design considerations for future data centers?

A: Scalability, sustainability, and resilience are key. That means using modular designs, energy-efficient systems, strong cybersecurity measures, and flexible infrastructure that can grow with demand.

Q: How can construction improve data center security?

A: Security features can be built into the physical design, including surveillance systems, lighting, fencing, alarm systems, and backup power to maintain system integrity during outages.

Q: What role does insulation play in data centers?

A: Insulation ensures temperature stability, which is critical for protecting servers and reducing energy usage. Advanced materials like aerogels and sustainable options like hempcrete are gaining popularity.