How the Manufacturing Sector for Data Centers Is Growing

As the fourth industrial revolution races on, demand for data centers is booming. But the same forces driving this boom require data centers to become more efficient, scalable and sustainable than ever. The manufacturing sector is adapting to meet these needs. Read on to understand how the manufacturing sector — specifically for data centers — is actively growing and the challenges and opportunities this growth presents.

AI Drives Data Center Demand

The rapid development and expanded applications of generative artificial intelligence (AI) models are the main drivers of demand for data centers. Alongside the Internet of Things (IoT), big data analytics, 5G deployment and the general growth of cloud services, this is because of factors like:

• Computational power: The high-performance computing that powers AI models relies on hardware like graphics processing units and tensor processing units, which data centers house. As AI workloads increase, so will the need for data centers to support their computational power.
• Cloud and edge computing: More companies are leveraging AI models from major cloud service providers (CSPs). These models depend on cloud (centralized) and edge (decentralized) facilities, which data centers host. CSPs need more data center capacity to continue developing and running their models.
• Model training datasets: Generative AI models require training based on vast datasets. Data centers provide the storage capacity to collect and maintain these data stores as AI innovation continues.

How Manufacturing Supports Data Centers

For the data center industry to keep pace with AI, it’s leaning on the manufacturing sector to produce vital infrastructure. The role of manufacturing in data centers includes providing the following:

• Prefabricated modular data centers: Some manufacturers are now prefabricating data center modules to transport and assemble on-site. This approach is cost-efficient and scalable, reduces construction time, and improves quality control. Prefabricating modular data centers meets the industry’s needs for rapid deployment of new data centers with streamlined, standardized designs.
• Cooling systems: AI servers generate massive amounts of heat, making efficient cooling vital to prevent overheating. Manufacturers meet this need by producing cooling solutions, including direct-to-chip, liquid immersion and rear-door heat exchanger systems.
• Electrical infrastructure: Data centers require many manufactured electrical components, including cables, transformers, switchgears, uninterruptible power supplies and power distribution units.
• Power supply units: Manufacturers fabricate components for power supply units (PSUs) within AI computing servers. These include the latest 48-volt PSUs, which help optimize data center energy efficiency. With increasing total rack power, the efficiency does not drop off as it does at 12 volts.
• Sustainable energy technology: Because data centers have such high power demands, their potential environmental impact is significant. To manage this, more are turning to renewable energy sources like solar and wind while opting for energy-efficient equipment and sometimes waste heat recovery systems. Manufacturers fabricate the components all these sustainable solutions depend on.
• Energy storage solutions: Manufacturers produce devices like lithium-ion batteries for storing energy, including power from intermittent renewable supply systems like solar panels. These storage solutions are vital to maintaining a consistent power supply to energy-hungry AI servers.

Challenges in Data Center Manufacturing

Manufacturers serving the data center industry are contending with four main challenges. Enterprises that can overcome these challenges will be the most successful in capitalizing on the data center boom:

• Capacity: To keep up with demand, manufacturers must expand their capacities and enhance their processes. This involves building strategic partnerships with suppliers and investing in facilities, equipment and labor.
• Efficiency: Along with capacity, the manufacturers winning the largest contracts will be those that can deliver scalable services for lower prices with faster turnarounds. Strategies to enhance time and cost efficiency include prefabrication and supply chain streamlining. For example, your manufacturing business could partner with an all-in-one facility that has the engineers, equipment and services you need to support you under a single roof.
• Cybersecurity: As data centers accumulate massive stores of potentially sensitive information, cybersecurity becomes even more essential to their integrity. They rely on manufacturers for hardware and infrastructure to support reliable cybersecurity protocols. Manufacturers can support cybersecurity goals by producing hardware with embedded security features, adhering to secure supply chain practices to prevent tampering, and complying with standards like NIST SP 800-161 for supply chain risk management.
• Sustainability: Data centers are shifting toward energy-efficient and sustainable designs. This challenges manufacturers to provide components for reduced energy consumption and improved power usage effectiveness, renewable energy integration, and power storage systems. Manufacturers are also looking to relevant compliance standards like ISO 50001.

Looking Ahead in Data Center Development

Industry analysts project data center demand to grow 19%-22% per year through 2030. By 2030, they predict that 70% of all data center demand will be for hosting AI workloads. To realize this growth, data center owners could spend over $250 billion on mechanical and electrical systems by 2030. Manufacturers that can act soon and provide scalable solutions to this industry could form profitable long-term relationships.

Manufacturers with sustainable solutions could be some of the greatest beneficiaries of the data center industry’s growth. This is because hyperscalers like Apple, Google and Meta have committed to using only carbon-free energy by 2030. Manufacturers of renewable energy components and other carbon-free power equipment stand to capitalize. Since cooling accounts for around 40% of data center power consumption, the drive for energy efficiency and sustainability will also benefit manufacturers of cooling systems and their components. This figure could be reduced by 10% thanks to various cutting-edge cooling solutions.

We can also expect more data center owners to look to prefabricated modular manufacturing. Popular prefabrication solutions for data centers will include:

• Structural and architectural prefabrication, including beams, walls and facades.
• Skid-mounted solutions where mechanical, energy, cooling and IT solutions attach to metal racks.
• Cabinet-enclosed modules for mounting and connecting equipment.

Why Trust Us for Data Center Manufacturing?

PBZ Manufacturing’s story begins with Paul B. Zimmerman opening his shop in 1947 to fix equipment for local farmers. Since then, we’ve grown into a full-service metal manufacturing company with that same resourcefulness in our DNA. Our experienced team of professionals meets all our manufacturing partners’ needs under one roof — from fabricating components to complete assembly and shipping.

Our team has dedicated expertise in the data center industry. Some of our partners are leading data center infrastructure manufacturers that trust our certified welders and engineers, equipment, and ingenuity to get the job done.

Seize Manufacturing Opportunities With PBZ 

If you’re an OEM looking to capitalize on data center demand, the key is to provide scalable, cost-efficient solutions. However, the broad range of equipment and expertise involved in manufacturing for data centers makes this challenging.

We’re here to assist. PBZ Manufacturing provides all your metal manufacturing needs under one roof, including fabrication, finishing, assembling and shipping. Rather than involving separate companies in each of those stages, streamline your process with PBZ. By partnering with PBZ, you can offer the competitive pricing, efficient turnarounds and precise fabrication the industry demands.

Get a quote for your data center manufacturing project today!

• 𝕏