Are Modular Data Centers really the groundbreaking technology of future?

A critical review of Modular Data Center’s pros, cons and future.

Modular Data Centers (MDC) are challenging the conventional bricks and mortar type Data Centers (DC) in terms of deployment speed and lower Capex, however is it fit for all situations? What are the challenges that could be faced by customers with it? 

Large amounts of data created by the adaptation of data driven disruptive technologies such as IoT and AI has increased the power, cooling, computing and networking demands of the DC for its data transfer, storage and big data analysis. Cloud is considered an effective computing model to accommodate such demands with its resiliency and high availability with its feature of virtualisation, disaster recovery management, scalability and modularity. However depending fully on remote cloud for the entire computing process attracts process latency from data transfer from edge device to cloud and back, this introduces intermediate fog and edge DCs, it also helps to reduce the computing and storage demands.

Colocation and cloud DC’s growth around the world in the past year was tremendous, especially in Europe (Ismail, 2018). Complexity of DC technologies, its operation, capacity planning, technology changes and growth estimation becomes more complex, this leads corporate clients to outsource the complex part to the colocation professionals and concentrate on their core business. It is substantiated by a survey report by Vertiv that 57% of the enterprise customers indicated that they will increase the colocation usage in next 2 years (Vertiv, 2018). Companies those are restricted to host their services on cloud or colocation facilities will continue with their on-premises enterprise facilities, however others will be contributed for the consolidation of DCs. This will lead to more and more mega cloud and colocation DCs in coming years, but whether the legacy bricks and mortar DC build approach is sustainable to meet such business demands? The bad news is that a typical medium size bricks and mortar DC take 2-3 years to plan, design, build and handover to the client, while the industry is looking for something faster than this. However the good news is that the Modular Data Center can fill this gap and meet the speed the customer expects. Below report critically analyses the type of Modular Data Centers, its pros and cons, and future. 

Modular Data Center 

“Modularity” is one of the favourite buzzwords in IT infrastructure industry for many years, it was popularized with the modular UPS systems earlier, then it moved to cooling systems, DCiM, PDUs etc, and finally the Data Center (DC) itself became modular. In early days Modular Data Center (MDC) were referred as Containerized Data Center (CDC), typically constructed with 20 and 40 foot ISO shipping containers. CDC were designed for small computer rooms or network closets with maximum of a dozen racks with low or medium density. Later the modular building technology incorporated with DCs and now MDCs are available for any size or capacity. In current environment the best classification for MDCs could be pre-engineered and fabricated building or just pre-fabricated building. Today MDCs can be delivered in multiple floors and thousands of square meters without any limitations and it is ready to accommodate any technologies as per the customer choice. Technologies such as free cooling, liquid cooling, evaporative cooling, DRUPS, AC/DC powering and ultra high density racks becomes normal choice from the basket.

Types of Modular Data Centers

MDCs are fabricated at the vendor factory, and shipped to the final location as small pieces suitable for road, rail or sea route shipment. There are two type of MDCs, where some vendors are using typical shipping containers for its construction by modifying and joining multiple containers together, while others are building with customer specific walls and roofs. Typical 40 foot or 20 foot based container MDCs has the limitation of accommodating oversized racks or raised floor due to its internal height limitation of approximately 2.65mtr. It usually resembles low height industrial building, with some limitations of using specific cooling technologies, and there are practical challenges for multi-storey construction. However this approach is supporting the vendors to provide a cost effective and fast deployment feature. Also some of these limitations of container based DCs can be overcome by adding a bit extra bricks and mortar constriction at site along with the deployment, however it argues the concept of true modularity and scalability. Other vendors don’t have similar limitation of height or number of floors or cooling technology usages, however the cost of such approach is slightly on higher side. They may be able to justify this excess cost with the Opex and agility in deployment. Cooling technologies’ flexibility such as free cooling or evaporative cooling, customer usage flexibility and appearance of the building could payback the extra Capex. Both types of MDCs can be installed outdoor or indoor, as well in an existing or new warehouse, this will provide more flexibility for the operation management, additional security and help for utilizing the existing resources effectively.

In both types, MDCs are having the upper hand over typical traditional bricks and mortar DCs in many ways. Typical MDC required very limited site activities, such as the foundation for the modules of MDC and other site works such as Generator foundation, fuel system, cable entry trenches, utility source etc. These activities can be conducted even before the shipment of the MDCs from the factory. Hence the parallel activities are helping to save time and money. The MDCs can be build based on the criticality requirement, which is typically certified as Tier I to Tier IV. There are MDCs, which are pre-certified for its Tier levels prior to the shipment, however those designs are having less flexibility and customization options. However such MDCs are having the advantages of quick design phase, proven designs and particularly bug free from the improvisations based on previous project’s feedback. 

How can it help customers?

These sudden technology changes and market demand opportunities can be fulfilled by MDCs, typically a medium sized DC of approximately 1000-2000 m2 white space having a computing power of 2-4MW can be produced and delivered to the site within 10-12 months time. While the traditional bricks and mortar DCs will consume more than double this time, and this not only increases the Capex, but also cause major revenue and customer loss. The cash flow management in traditional DCs are not efficient due to the unpredicted variations in project progress, delay in handover and capacity planning issues. Usually traditional DCs are planned for meeting the projected demand for next 5 or 10 years, the CapeX invested for the future demand will generate revenue after a long period of handing over, typically more than 50% of the DC will be empty in the initial years. Due to the dynamic nature of the IT industry, the technology will change and the future provisioned DC space may not be suitable later. The MDC model can be extended as per the actual business and technology needs, moreover the visibility of expansion and the capacity management will be more realistic, which will support efficient cash flow management too. 

With the advancement of IoT, AI and cloud technologies’ they attracts more and more fog and edge DCs. Similarly this growth is further fuelled by telecom companies due to the increase of connected devices and systems to the network from the expansion and introduction of technologies such as POP, 5G and OTT. Usually these type of DCs are small in size, while the number of such facilities are high. Bricks and mortar based DCs when used to address such requirements will attract excess cost, time and complexity. Container based DCs or medium scale MDCs are choice for such sites, which will support the standardisation of facilities, speed of deployment and ensure required availability. 

Quality of workmanship, materials, methodologies, technologies, installation, commissioning in the DC construction etc. will vary based on the countries. Matured market will have access to qualified and experienced consultant, engineers and resources for their DC project, while other market’s build quality could vary from the constraints of quality resources. MDC customers can be assured a seamless quality for design, sourcing, installation, integration and commissioning, irrespective of the location it is going to implement. MDCs also has the advantage of single source end to end DC functional responsibility, this in turn help to ensure efficiency, integrity, future supports and the standardization of management.     

MDCs are manufactured usually with metal, which is one of the most recycled material in the world, hence it supports the green initiatives such as the Life cycle analysis (LCA) model for Data Center. LCA is considered as one of the most matured sustainability model, where it holistically evaluate DC’s impact at various stages of its life cycle. It provides a framework by assessing the life cycle (LC) of a product or service from cradle to grave. Typical MDC enclosure life is above 25 years, however with necessary maintenance and re-painting it can be extended further beyond 35 years, which is almost equal to the typical bricks and mortar buildings. 

Difficulties in arranging huge Capex for the DC projects in current market environment is a reality and companies preferred to invest in phases and grow as and when there is business demand and budget. The “modularity” is always linked with “scalability”, and MDCs assures the quick deployment and easy capacity enhancement. Customers can expand its capacity by adding additional modules even while the existing MDC modules are in operation. This will help for managing the Capex effectively by investing for the exact need. However the infrastructure such as power or other sources of energy to be provisioned based on the modules growth. Adding an extension to a typical bricks and mortar DC building is expensive, complicated and time consuming process. Real estate cost is also one of the major cause for the popularity of MDC, client can choose open land at cheap locations for its implementation. Since MDC require less site activities and engineering works, it can be constructed far from the expensive urban areas, as long as reliable power and connectivity are ensured.  

Challenges of Modular Data Centers! 

MDC’s features look promising, however there are multiple challenges with them. One of the major points to be considered is the selection of the MDC vendor. Most of the IT infrastructure system manufacturers started manufacturing and installing MDCs globally. In a deep look, a typical DC has hundreds of components, the vendor use their own components from their factory as first priority for its construction, while they use many third party devices too. Most of the time these manufacturers are fully relying support for these third party component’s locally at the factory location. While the after sales support of these components at remote final destination of MDC is an area of concern. Some times the local support of those components may not be available due to the vendor’s operation area limitations or due to the customization done specifically for MDC.

MDCs are purchased by the customer as a single product, hence practically all the after sales support is locked with a single source and this will impact the negotiation power of the purchaser. Similarly future scalability is also locked with single source due to the compatibility and potential complexity of adding a new type vendor module. 

Similar to that the server’s refreshment happening every 3-4 years, the DC infrastructure components, floor plans, cabling etc. are usually refreshed every 7-10 years. Bricks and mortar type DCs are acceptable for such renovations, however to what extend MDCs will support those DC refreshments? During the life span of 25 years, MDCs could face 3-4 major refreshments to alive the investment. Such activities are not as easy as bricks and mortar DCs, even making a hole in an MDC enclosure requires a close coordination with the manufacturer. In coming years the competition between MDC players will increase and many new players will also be introduced, but importance of selecting a reliable and proven vendor as the MDC manufacturer will protect the customer investment.

Every country or state has their own building codes and regulations, and the MDC construction has to follow all those regulations to attain building permits and utility connections. Sometime this process is lengthy and standards may conflict with vendor’s standards. This may lead to more time and duration for the project delivery and the installation. This is not just limited to the DC enclosure, it affects the MEP components also. As a typical example, in some countries power cables and electrical boards used has to be from the local authority certified sources; this could jeopardize the MDC design and delivery period.      

Future of MDCs

With the fast growth of cloud computing, IoT and AI, demand for computing and storage requirements will increase. To support such growth and fast implementation requirements will increases the MDC popularity. It can expect more and more mega MDCs in future from telecom, colocation, social network and cloud providers due to the speed of implementation, better cash flow and investment efficiency. Same time many new MDC providers will enter the market in coming years, which will reduce the price due to competition. However the after sales support will be a challenge with new vendors.       

Conclusion 

As the complexity of the Data Center increases with the IT technological demand, customers keep looking for alternatives. MDC is a clear winner in this, as it transforms the DC to a commodity by moving away the engineering complexity from the customer. 

References

Ismail, N., 2018. The European cloud and colocation market are booming. [online] Information Age. Available at: <https://www.information-age.com/european-cloud-colocation-market-booming-123470849/> [Accessed 8 Jan. 2019].

Vertiv, 2018. Understanding Buyer Behaviors for Colocation Services. [online] OH. Available at: <https://www.vertivco.com/globalassets/documents/reports/vertiv-2017colocationsurvey-wp-en-na-sl-24695_181021_09.pdf> [Accessed 8 Jan. 2019].

Today’s guest post is written by Juby Joseph, a Division Manager for the Data Center division in Mideast Data Systems, UAE. He is a techno-commercial expert in Data Center field with more than 15 years experience https://www.linkedin.com/in/jubyjoseph-DC/

Disclaimer: The views, opinions and positions expressed within these guest posts are those of the author alone and do not represent those of Datacenex Ltd. The accuracy, completeness and validity of any statements made within this article are not guaranteed. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author and any liability with regards to infringement of intellectual property rights remains with them.