Siemens Smart Infrastructure has collaborated with Delta Electronics to supply prefabricated modular power infrastructure for data centers. The partnership aims to accelerate data center deployment, lower costs, and reduce carbon emissions.

According to Delta Electronics’ press release, the firm plans to deliver containerized power units, such as SKIDs and eHouses, that are built and tested off-site before being shipped to data center locations for plug-and-play installation. Delta revealed that the approach will reduce deployment timelines by up to 50% improving the time to market for hyperscalers and colocation facilities.

The partnership projects a 20% CAPEX savings from the prefabricated modules

Delta will contribute its high-efficiency uninterruptible power supply (UPS) systems, batteries, and advanced thermal management technology. Siemens, on the other hand, will contribute by bringing its expertise in electrical distribution and engineering services. Based on the company’s press release, the collaboration aims to capitalize on the growing demand for high-capacity computing workloads driven by AI and cloud infrastructure. 

Siemens estimated that the prefabricated power modules would deliver up to 20% CAPEX savings through the reduction of on-site construction needs and concrete usage. The optimized designs would also reduce carbon emissions by up to 27%, according to Siemens’ press release. 

Stephan May, CEO of Electrification and Automation at Siemens, said that the collaboration marks a milestone for data center construction, especially in high-growth regions. He noted that combining Siemens’ grid-to-load power distribution with Delta’s efficient power electronics enables a customizable, prefabricated solution, which has a faster setup and lower construction risks.

Jimmy Yiin, Executive Vice President of Delta Electronics, described the collaboration that integrates UPS, battery, and cooling systems in a compact, containerized format, allowing the system to be placed closer to a critical load. He added that the combination reduces energy losses and improves system efficiency. 

Notably, based on the Delta press, the use of Building Information Modeling features and digital twins will help in building the modules, integrating real-time data from all components, including third-party gear, into a digital model. According to the press, the model can be integrated into a data center’s building management system, helping operators monitor performance, detect issues before they occur, and run more efficiently throughout the facility’s lifespan. 

According to Delta, the modular units will be manufactured through its integration hubs across the EMEA and Asia-Pacific regions. The firm noted that it will enable localized and fast delivery options for customers. The firm noted that the standardized, factory-tested design will reduce the number of trades required on-site, lowering construction complexity and avoiding common delays associated with traditional data center builds. 

Delta stock jumps over 6% alongside Siemens 1.2% 

The partnership noted that the plug-and-play nature of the SKIDs and eHouses would free up data center floor space, in addition to reducing build risks. The modules are to be relocated outside the main data hall footprint, helping operators to maximize the free area inside with usable computing infrastructure. 

Siemens noted that demand for AI and cloud capacity is growing, increasing construction costs and risks. With the introduction of prefabricated and modular power systems, a more predictable, scalable, and sustainable data center expansion can be realized. The two firms are combining their efforts, hoping to offer a compelling solution to hyperscalers and colocation operators. The prefabricated and modular power systems would support rapid deployment, cost savings, and environmental protection. 

Delta Electronics’ stock price has jumped over 6% today, trading at $954.00. The firm has had a strong performance this year, recording a roughly 128.78% increase year to date, with a year-end range of $275.00 to $1,085.00. 

Siemens, on the other hand, has recorded a 1.2% jump today following the announcement of the collaboration. The stock is currently trading at €221.55 on the DE exchange with a YTD of 17%. 

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