What are modular data centers and how can they be used beyond crypto mining?

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As the volume of data has continued to increase in recent years across essentially every industry, modular data centers have begun serving an important purpose for businesses. Everything from driverless cars and video streaming to financial information and trading makes use of massive amounts of data on a daily basis.

Initially thought to primarily function within the cryptocurrency space, modular data centers have broken into many other industries and now help thousands of businesses scale and expand. Here’s some background on what modular data centers are and how they are providing an advantage for modern organizations worldwide.

What is a modular data center?

A modular data center is a portable system of data deployment that relies on scalable capability and high-efficiency power and heat management to make the most of data of all kinds. You can essentially think of it as you would a brick-and-mortar data center, but with several important distinctions – primarily its portability and scalability for users.

In a modular data center, individual modules can be added and integrated at any time to ramp up the capability of a given system.

There are two types of modular data centers – containerized and modular – each with its own strengths and benefits.


Containerized data centers are more common and come in the form of one or a series of shipping containers that are transported to a specific location and then outfitted with the necessary equipment to help the user achieve its data objectives.

Containerized systems usually come outfitted with their own cooling functionality already built in.


Modular data centers consist of prefabricated components capable of being quickly deployed and then added on to as additional capacity is needed or available. This modular setup allows for increased customization in terms of layout and performance.

One example would be a modular facility built into a series of data center halls that are all linked by a central operating cell or building. A single container or multiple containers may be included as part of a modular data center.

Benefits of modular data centers

Here are many of the main reasons modular data centers are proving to be so beneficial for users both big and small.

  • Scalability – Users are able to start small and gradually ramp up their operations as goals and budgets allow.
  • Energy efficiency – Modular data centers make use of high-efficiency power and cooling and can also take advantage of low power costs if placed in the right locations.
  • Customization – Centers are flexible and able to be customized to meet the needs of a given application.
  • Quick setup – The rapid deployment both indoors and outdoors is critical in an era of ever-expanding data. The modular nature of data centers eliminates delays inherent in setting up brick-and-mortar operations.
  • No need to buy – Modular data centers are able to be leased rather than purchased, meaning users can determine the length of their contract based on the timelines of their operation’s goals rather than committing to long-term agreements.
  • All inclusive – From security and heat management to IT infrastructure and beyond, systems are pre-built with everything users need to be successful and profitable.

Uses beyond blockchain

Data centers centralize an organization’s IT operations and equipment along with where it stores, manages, and disseminates its data.  Modular data centers burst onto the scene with the rise of cryptocurrency, and while they do provide a highly profitable method through which to host mining operations, they are also appealing for many computationally intensive, non-mission critical applications.  

Bringing together hyperscale and edge data centers into a new hybrid concept that is more efficient, a modular data center infrastructure is scalable and agile to support applications for machine learning, artificial intelligence, IOT, big data, and more. 

The flexibility in this type of design provides infrastructure and operational leaders with confidence as they look to support growth initiatives while managing costs rather than investing in expensive company-owned data centers.

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Contact us to learn more.

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