Data Center and Energy Consumption: Problem or Necessity (Part 4)
Hyperscalers vs. Modular Data Centers: Size Does Matter (and So Does Efficiency

In today's digital era, data centers are essential for the operation of cloud services, streaming platforms, and mobile applications. Traditionally, large data centers have dominated the technological landscape, but medium and small data centers offer significant advantages in terms of energy consumption, sustainability, job creation, and physical space utilization.

Energy Consumption and Sustainability

Large data centers typically have high energy consumption. For example, the Kolos data center in Norway, with an area of two million square meters, plans to consume up to 1,000 megawatts of power by 2027. xataka.com

This level of consumption poses significant challenges in terms of sustainability and carbon footprint.
In contrast, medium and small data centers, such as modular data centers, are designed to be more energy-efficient. These facilities use prefabricated components that enable faster construction and more efficient operation, reducing energy consumption and minimizing environmental impact. datacentermarket.es

Energy consumption and sustainability are critical aspects of data center operations. Small and medium-sized data centers offer significant advantages over large data centers in terms of energy efficiency and water resource usage.

Energy Consumption

Large data centers can consume massive amounts of energy. In 2022, data centers, cryptocurrencies, and artificial intelligence consumed approximately 460 TWh of electricity worldwide, accounting for nearly 2% of global electricity demand. cincodias.elpais.com

In contrast, small and medium-sized data centers, designed for specific needs with a more streamlined infrastructure, can implement energy efficiency strategies that lead to significant savings. By optimizing design, utilizing virtualization technologies, and implementing efficient cooling systems, energy consumption can be reduced by up to 30%. lovtechnology.com

Water Consumption

Water usage is another important factor in the sustainability of data centers. Large data centers that use evaporative cooling systems can consume between 11 and 19 million liters of water per day—enough to supply a small city of up to 50,000 people. sostenibilidad.ituser.es

Small and medium-sized data centers have the ability to adopt more efficient and less water-dependent cooling systems. The implementation of liquid immersion cooling technologies can significantly reduce water consumption, contributing to a more sustainable operation. cincodias.elpais.com

The adoption of small and medium-sized data centers offers clear advantages in terms of energy efficiency and sustainability. By reducing energy and water consumption, these facilities not only lessen their environmental impact but also contribute to a more cost-effective and responsible operation. It is essential to consider these alternatives when planning the digital infrastructure of the future, aiming for a balance between performance, cost, and sustainability.

Job Creation and Physical Space Utilization

Large data centers require vast expanses of land and, while they generate employment during construction and operation, their scale can limit integration with local communities. On the other hand, medium and small data centers can be located in urban or semi-urban areas, fostering local job creation and contributing to the economic development of the region.

Location and Flexibility

Smaller data centers offer greater flexibility in terms of location. They can be installed closer to end users, reducing latency and improving the user experience. Additionally, their more compact size makes it easier to adapt to different environments and specific business needs.

Examples of Success and Failures

A notable example of a successful medium-sized data center is the modular data center project in Spain, which has enabled several companies to implement efficient and sustainable solutions tailored to their specific needs. 

Another example is the modular data center of T-Systems in Cerdanyola del Vallès. Opened in 2012, this center was built in a record time of six months, thanks to its modular design. This speed in implementation allowed T-Systems to consolidate over 80 data centers globally, optimizing resources and improving operational efficiency. computerworld.es

Some large data center projects have faced significant challenges. In December 2024, the Lleida City Council rejected the construction of two mega data centers. Local authorities argued that these facilities required large amounts of land, water, and energy but offered limited economic benefits and generated few permanent, specialized jobs for the local community. This decision highlights the difficulties that can arise when trying to balance the needs of digital infrastructure with the expectations and needs of local communities. cadenaser.com

The disruption of the DeepSeek generative AI model has negatively impacted tech companies with large investments in massive infrastructure, highlighting that a smaller infrastructure need can be more efficient and sustainable. cincodias.elpais.com

These examples highlight the importance of considering more sustainable and adaptable approaches in the planning of digital infrastructures.

It is essential to reconsider the traditional model of large data centers and explore more sustainable and efficient alternatives. Medium and small data centers offer significant advantages in terms of energy consumption, sustainability, job creation, and flexibility. Adopting these solutions can lead to a more balanced and environmentally friendly digital infrastructure, ensuring its long-term viability and success.

Data Center and Energy Consumption: Problem or Necessity (Part 3)
The Limit of Giants: Can Large Data Centers Sustain Digitalization Without Collapsing?