How U.S. Manufacturing is Stepping Up to Satisfy Surging Data Center Market?

Data center construction is booming in the U.S., with over $200 billion invested since 2015 and capacity expected to double by 2023. Strategic partnerships, innovative construction techniques, and advanced technologies empower an industry’s evolution.

The Evolution of U.S. Data Center Demand

U.S. data center capacity requirements have entered a phase of tremendous growth. According to the global research firm IDC, nationwide data center space will reach 378 million square feet by 2025, doubling from 2018. Historically, centralization of facilities allowed efficiencies of scale. Now, edge computing dictates distributed capacity among metro areas and populations.

Partnerships with construction firms enable rapid commissioning of purpose-built data centers. For example, Schneider Electric and Compass Datacenters recently agreed to build over twenty prefabricated and efficient data centers jointly by 2025.

“We needed breakneck speed to market,” says Nancy Shemwell, SVP at Schneider Electric. “By collaborating, we expect to complete deliveries in just four months from breaking ground.”

Spotlight on Key Partnerships and Innovations

Mass-produced modular data centers allow companies like Compass to expand quickly. Their CEO, Chris Crosby, notes, “We’re leveraging technologies like AI, IoT sensors, and fiber optics to improve efficiency, operations, and responsiveness.”

Many firms are also adopting advanced cooling methods. Startup Nomadic Power pioneered two-phase immersion cooling and submerging servers in custom dielectric fluid. This removed fans and reduced cooling energy usage by over 95 percent. So far, their systems have prevented over 7,000 tons of CO2 emissions.

Technological Advancements Driving Change

AI now extensively spans data center design, automated infrastructure management, security, and efficiency optimization. It allows the modeling of workflows, temperatures, and bandwidth demands to improve resource allocation. Google developed a deep reinforcement learning model that reduces cooling energy by up to 40 percent.

While virtualization and cloud computing centralize some processing, innovative hardware like GPUs for AI computing have unique configuration demands. This leads to custom modular designs like Dell’s Optimized Solution for AI that packs performance into smaller spaces.

Strategic Manufacturing Approaches

The prefabricated modular infrastructure allows assembly-line style construction, bypassing on-site builds using stick methods. Streamlined for efficiency, standardized designs, and then customized configurations.

Microsoft recently applied this strategy for a rapidly built data center in Iowa. “Using prefabricated components, we’re commissioning faster than ever with higher reliability,” says Noelle Walsh, Microsoft’s CVP of Cloud Operations.

Economic Impact of Manufacturing Expansion

Major investments target scaling American high-tech manufacturing, bringing extensive economic benefits. For example, Siemens AG recently opened a $54 million facility in Texas producing automated, resilient electrical data center equipment. This adds 200 advanced manufacturing jobs, with 500 more projected from supplier operations.

These facilities drive job creation and growth in other sectors, too. States offering incentives for data center construction estimate that each new facility brings an average of $4 billion in economic impact. With over 20 new U.S. data centers built in 2022 alone, the cumulative effect is massive.

Overcoming Supply Chain Challenges

While modular data centers allow custom configurations matching specialized demands, some components, like high-capacity batteries, still require long lead times. Strategic planning and demand forecasting mitigate this, as Microsoft demonstrates through early procurement for capacity upgrades years in advance.

Some firms like Nomadic Power take vertical integration to the extreme, avoiding external suppliers by manufacturing specialty components in-house. This proved essential when the pandemic and geopolitics disrupted global supply chains.

Future Outlook and Emerging Trends

Based on current growth rates, U.S. data center capacity will reach nearly 700 million square feet by 2025, presenting a $200+ billion market opportunity. While AI and IoT fuel demand, sustainability is also a priority with initiatives like Schneider Electric’s net-zero programs and Compass’ renewable energy supplies.

Experts also forecast growth in hybrid models, with enterprise data centers hosting edge micro-modules to distribute processing. Automating these vast networks will require extensive AI management. As this infrastructure expands, expect even greater demand for highly skilled technical roles from electrical engineers to data scientists.

FAQs

What are some key innovations shaping new data centers?

Modular and prefabricated construction, advanced cooling methods like immersion technology, AI-powered management software, sustainable power supplies, and features.

How does data center expansion impact jobs and economic growth?

Billions in investment create construction and longer-term operational jobs. High-tech facilities also attract related businesses to their regions, expanding the skilled workforce and tax base.

What emerging technologies will affect future data center infrastructure?

Increasing use of AI, edge computing capacity expansion, dual hybrid centralized and distributed networking, and equipment supporting technologies like IoT sensors and machine learning analytics.

Conclusion

Driven by immense demand increases for storage, networking, and computing capacity from AI, IoT, 5G, and more, innovative American manufacturing and construction partnerships race to build state-of-the-art data centers faster than ever before. New advanced technologies make these facilities more capable, efficient, resilient, and sustainable than they were previously imaginable. With hundreds of billions in expected investment, this infrastructure promises sustained economic growth for decades while empowering all the emerging digital innovations we have yet to experience.