Prefabrication could help green Singapore’s data centre industry

    • Prefabrication is already being widely used across Singapore’s buildings, and there is greater room for it to be adopted in the construction of data centres here.
    • Prefabrication is already being widely used across Singapore’s buildings, and there is greater room for it to be adopted in the construction of data centres here. IMAGE: SCHNEIDER ELECTRIC
    Published Fri, May 23, 2025 · 07:00 AM

    THE biggest contributor to a data centre’s carbon footprint is electricity consumption, and businesses and government have been rightly examining how to cut this down.

    Yet, companies should consider the cost of construction too. This is especially as more jurisdictions promote or require the reporting of Scope 3 emissions, which include embodied carbon from construction.

    One possible solution: prefabricated modular data centres.

    Broader studies of modularised, off-site construction have shown emissions reductions of up to 45 per cent versus traditional construction methods.

    Prefabrication is already being widely used across Singapore’s buildings, and there is greater room for it to be adopted in the construction of data centres here.

    While results will vary with the approach, and modularised prefabrication may not be suitable for all scenarios, careful consideration of construction methods can help data centre developers, owners and operators reduce their carbon footprints.

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    Embodied carbon: Oft-forgotten contributor

    According to the World Green Building Council, buildings are responsible for 39 per cent of global energy-related carbon emissions: 28 per cent of emissions come from the energy needed to heat, cool and power buildings, and 11 per cent can be attributed to materials and construction.

    For data centres, embodied carbon may be a slightly lower proportion because these buildings are energy-intensive.

    One analysis puts the figure at 6 per cent, counting materials such as concrete, steel, glass, wood, plastics, composites, thermal and moisture protection, openings and glazing, and finishes.

    Our own modelling of a data centre’s emissions, which includes the cost of capital equipment, suggests the core and shell of the data centre building could represent 6.6 per cent of Scope 3 emissions before power is turned on.

    Concrete represents 85 per cent of the embodied carbon in the core and shell, while finishes and flooring represent the second-largest portion of the pie at 11 per cent.

    Considering the environmental impact of concrete alone, which is not just energy-intensive but water-intensive, a prefabricated modularised data centre built of steel offers significant savings in embodied carbon.

    More analysis is needed to calculate the exact reductions in embodied carbon from the use of prefabricated solutions, but we are confident that the results will be positive.

    The prefabricated data centre

    A prefabricated modular data centre is a data centre that has its systems (hardware and software) preassembled, integrated and tested in a factory environment.

    These systems may be mounted on a structure – called a skid – or installed within some kind of enclosure.

    Since they are built in controlled environments, prefabricated data centres have high quality and consistency.

    Our analysis shows prefabricated modules can also be deployed 40 per cent faster than a traditional build with the same infrastructure.

    On top of saving time, prefabrication saves on resources. There is little wastage of materials. Also, capacity can be added as needed rather than being built in right from the start.

    This approach is particularly beneficial for companies experiencing rapid growth or fluctuating workloads driven by artificial intelligence (AI) and edge computing.

    We have also found energy savings of 20 per cent from prefabricated modules, as the pre-engineered design of the modules allows for better integration of power and cooling system controls.

    Prefabricated data centre modules can also be used in existing buildings, making them suitable for anyone looking to repurpose an existing building for data centre use. As Singapore’s economy adapts to the AI movement, prefabrication technology is one way to upgrade existing space.

    Innovating at the edge

    Singapore’s data centre market is set to grow from US$1.3 billion in 2023 to an estimated US$3 billion by 2032. The nation’s digital economy is booming, driving increased demand for infrastructure capable of supporting advanced AI applications and cloud services.

    The country’s urban density presents unique challenges for data centre development, though. Large-scale, traditional data centres can take up valuable real estate and are not at all feasible in some areas.

    Prefabricated modular data centres, however, can occupy smaller footprints while still delivering high performance. In highly connected Singapore, where multinational corporations want low latency and reliable connectivity, prefabricated data centres can bring computing power closer to users and enhance overall system performance.

    As AI continues to drive exponential growth and edge computing gains prominence, the ability to rapidly deploy reliable data centres will become a key competitive differentiator.

    Companies that embrace modular solutions will enjoy more than just smaller carbon footprints. They may look forward to faster go-to-market timelines, improved operational efficiencies, and a future-ready infrastructure that aligns with Singapore’s ambitions as a global digital hub.

    The writer is business vice-president, secure power, Singapore and Brunei cluster, at Schneider Electric 

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