The Compounding Trends of Prefabrication and Data Center Construction in Emerging Markets
Developments in these new emerging markets (Minnesota, North Dakota, New Mexico, Pennsylvania, and West Texas, to name a few) satisfy the need for those critical resources but must also navigate a separate known challenge in data center construction: access to skilled labor.
In mature markets such as Arizona and Virginia, where experienced mechanical, electrical, and plumbing (MEP) contractors are common, labor strain has pushed builders and operators to adopt innovative solutions to meet the scale and tight timelines of data center projects. A hybrid approach of on-site “stick build” and off-site modular prefabrication has become increasingly popular and successfully integrated into the construction process. Many large data center operators are now evaluating and selecting – as part of their Owner-Furnished Equipment programs – an off-site “Fabricate and Deliver” partner independent of the local installing contractor.
In emerging, often rural markets where local skilled labor is limited in manpower or data center experience, adopting a hybrid on-site/off-site approach early can effectively enhance local skilled labor. The shift to liquid cooling in AI-ready data centers requires high-density and precise MEP systems to mitigate the associated risks with operating these complex systems. Prefabricating these components off-site enhances quality assurance and simplifies installation.
The overarching benefits of this prefabrication approach are why its adoption is increasingly recognized as a key strategy for meeting the demands of today’s data center construction market. These benefits include:
- Accelerating construction deliverables to improve schedules and revenue paths
- Reducing dependency on external labor and increasing supply chain cost certainty
- Enhancing quality assurance through controlled environments and specialized equipment
- Maximizing available resources to expand operations and meet growing demand
- Improving worker safety and reducing material waste through off-site construction
As the integrated delivery approach of off-site prefabrication and on-site construction has shifted from a potential strategy to an essential reality, there are instrumental considerations in the planning phase to ensure success and maximize the benefit. Early engagement with clients and construction partners, particularly in a new market geography, enables your construction team to co-develop and execute a tailored program that meets your specific project needs and on-site dynamics.
What elements of data center MEP infrastructure are most effectively built off-site?
The most prevalent data center systems and components that are prefabricated today include:
- Custom racking and piping assemblies,
- Hot and cold aisle containment units,
- HVAC piping and ductwork,
- Preassembled cooling components,
- Stainless steel and high-purity systems,
- Skidded power and electrical equipment,
- Electrical distribution infrastructure.
Precision systems like stainless steel piping and leak-proof connections benefit from off-site construction in a controlled environment, where specialized equipment ensures quality and reduces installation risk in mission-critical facilities where downtime can be catastrophic.
How to ensure comprehensive integration of selected prefabricated off-site solutions
Advanced modeling and system prototypes help ensure that design intent is aligned for constructability, supply chain efficiency, and future O&M considerations. Testing and QA/QC protocols can vary between clients, so the engagement of key stakeholders ensures a clear plan and transparency to meet these critical standards. Upfront planning for construction sequencing, shipping, and on-site reassembly are key to seamless integration.
Planning for data centers in new markets requires a construction approach that utilizes both on-site and off-site resources to add value, expand your workforce, and optimize your installation. Early collaboration with your trade and prefabrication partners will also open the door to a series of integrated off-site possibilities that can add meaningful scale and precision to your project.
How Legence is Taking Prefabrication to the Next Level
Legence offers custom prefabrication solutions to accelerate deployments anywhere in the U.S. With nearly 450,000 square feet of fabrication capacity, we are equipped to handle projects of any size and complexity. Legence’s track record of over $1.3 billion in executed data center work across more than 100 data center clients is built on applying our expertise in a collaborative approach to meet the highest standards of precision in the mission-critical market.
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