Use cases of modular data center platforms

The common belief was that energy-efficient data centers were best developed in Nordic countries, due to their large-scale format, technological complexity, and intricate non-IT infrastructures. However, the evolution of digitalization, applications supported by machine learning, rapid development of online services, combined with a highly sensitive situation in Europe (military and economic aspects), is steering many specific projects toward the construction of highly flexible, mobile, secure, and energy-efficient data centers (DC). These are intended to be positioned as close to the customers as possible.

Modular DC solutions in the Czech Republic have emerged in response to the shifting demands for data storage and processing. This shift is driven by the need for rapidly deployed, scalable solutions that support various segments, including defense, utilities, telecommunications, manufacturing, transportation, and healthcare. A common factor is the operation of critical applications requiring the lowest possible latency, necessitating computing power or storage at the site where the data is generated. A significant advantage of these solutions is their ability to become fully operational within weeks by circumventing the building permit process, thus significantly enhancing their operational capabilities.

Characteristics of modular DC

  • Scalability and modularity allow organizations to accommodate data center growth in line with business demands.
  • Designed as part of a complex network, their flexibility facilitates deployment and re-deployment.
  • Security improvements include limited data storage
  • Reduction of latency issues.
  • Bandwidth: Local data processing reduces traffic to and from central servers, improving overall network performance.

Edge vs. cloud DCr

Cloud DC, designed to be large and often situated outside populated areas, leverage electrical power availability and cheaper land. The considerable distance between cloud data centers and end-users, ranging from hundreds to thousands of kilometers, increases latency. Thus, cloud data centers are more suited for hosting websites, e-commerce, and mobile and web applications. In contrast, edge data centers are essential for applications requiring low latencies.

New technologies and demands of the era

The rapid growth of IoT and 5G networks has facilitated new cloud applications across industries. For applications such as wearable medical devices or autonomous vehicles, rapid processing, low latency, and high bandwidth are critical. Gartner estimates that up to 45% of all IoT data is processed at the edge, underscoring the efficiency and effectiveness of edge computing.

Summary of typical use cases

  • Manufacturing
  • Face Recognition
  • Autonomous Vehicles
  • Medical Data
  • Augmented Reality
  • Content Delivery Networks

In the Czech Republic, the challenging administrative landscape for construction permits and a strong emphasis on landowners' rights have spurred the demand for modular, construction-independent solutions. Local suppliers, leveraging innovative approaches to maximize space and efficiency in edge DC, have attracted international partners and investors, especially in the automotive and technology sectors.

These developments highlight the critical role of edge data centers in modern computing and the unique market opportunities within the Czech Republic for investors seeking rapid returns on smart, growth-oriented projects. The Czech Republic, one of the world's safest countries, boasts a stable grid, excellent optical connectivity, and a predictable economic and political environment, making it an attractive country for investment opportunities with fast ROI. 

Miloš Macúch
VP Strategy & Business Development
Member of the Board of Directors