Modular data centers provide answer to current customer supply challenges

CHICAGO, Oct. 24, 2023 – JLL announced today it is working with Lumen Technologies and Schneider Electric to deliver ready-to-use modular data center solutions across the U.S. that prioritizes quick deployment, adaptability and scalability.

Lumen Technologies’ global network powers everything from metro connectivity to long-haul data transport and edge cloud, security and managed services capabilities, and Schneider Electric is a multinational digital automation and energy management company.

Using its extensive market coverage, JLL’s role is to manage the comprehensive site selection process. Land constraints are a challenge in today’s data center market, but JLL can quickly identify and secure sites, including approximately 5,000 along Lumen’s fiber network. As one of the largest and most connected networks in the world, Lumen brings the speed, global footprint and edge, storage and managed service capabilities to meet customer needs as they build for tomorrow. Schneider Electric provides the expertise in design and construction of the modular data center to get it operational within six to nine months. 

The data center industry has experienced massive growth in demand due to artificial intelligence (AI), IoT, 5G and edge applications, leading to a supply-demand imbalance in some markets. Additionally, this growth is happening faster than the existing infrastructure to support it allows.

According to JLL’s 1H 2023 North American Data Center Report, the first half of 2023 posted record absorption with hyperscalers, financial services firms, healthcare organizations and other major enterprises scrambling to secure data center space. With most of the year’s remaining supply already preleased or under exclusivity, operators must employ creative solutions – like modular data centers – capable of being rapidly installed, deployed on an accelerated timeline and with IoT adaptability.

“In today's digitally driven market, data centers and networks are essential for business transformation,” said Michele Hix, Vice President Strategic Customers, North America Operations, Schneider Electric. “Our collaboration with JLL and Lumen Technologies provides our clients with options to handle the megatrends shaping business, cities and consumers everywhere with solutions that are digital, sustainable, efficient and built to scale. We are excited to partner and help customers thrive in this evolving landscape, by responding to their needs faster through the accelerated deployment of edge data centers.”

“Digital transformations and next-gen tech like A.I. require more than just speed to market,” said Vincent Provenzano, Head of Advanced Solutions, VAR Channel, Lumen. “Customers are also looking for edge compute, data accessibility, increased network security, application performance and control. This agreement draws on an innovative Lumen portfolio to deliver solutions that increase efficiency, speed and enable business growth. Working together we can bring results that exceed customer expectations.”

The JLL team is being led by Executive Managing Director Joe Smurdon and Executive Vice President Mark To.

“Most hyperscalers are struggling to keep up with GPU demand and are allocating their capacity to the larger corporates, which leaves middle-market companies in a lurch,” said Smurdon. "Additionally, the time and capital required to bring additional computing capacity online takes several years, so these companies are forced to put band aids on their legacy facilities; however, our approach allows for a modular solution to be up and running in a fraction of the time and cost. JLL, Lumen and Schneider, together, provide the key speed-to-market solution that overcomes all these challenges associated with traditional data center builds.”

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