The diversity of laws and regulations forces companies to design specific strategies to guarantee the safe and legal operation of their infrastructure.
The expansion of modular data centers reflects a growing need across different industries, as they build flexible, scalable, and secure infrastructure in response to geopolitical instability, cyber threats, and the impact of climate change. However, their implementation brings a series of regulatory and compliance challenges that, if not adequately addressed, can hinder their deployment and operation.
The exponential growth of data volumes places additional pressure on traditional structures. Forecasts suggest that the global data volume will reach 182 zettabytes by 2025, making it even more important to have modern solutions capable of efficiently processing, storing, and protecting information. In this context, modular data centers have become a viable alternative.
According to a report by MarketsandMarkets, the modular data center market is projected to grow from $29.93 billion in 2024 to $79.49 billion by 2030, driven by rising demand for scalable and cost-efficient infrastructure solutions.
Local Regulations and Their Impact
Each region enforces its own regulations on data storage, information privacy, construction requirements, and energy consumption. Adapting a modular data center to meet these requirements may involve modifications in design, materials, and even certification processes.
Clear examples include the European Union’s General Data Protection Regulation (GDPR) and California’s Consumer Privacy Act (CCPA). These laws require that user data be stored under specific conditions and that organizations adopt defined security measures.
The geographic dispersion of modular centers compels companies to comply with diverse, sometimes conflicting, regulations. This complexity can complicate infrastructure management and increase costs if not anticipated from the outset.
Cybersecurity and Regulatory Compliance
The World Economic Forum has ranked cyberattacks among the top five global risks. Cybersecurity Ventures estimates that the cost of data breaches will reach $10.5 trillion by 2025. In this reality, modular data centers must incorporate advanced security tools to ensure optimal protection.
Access controls with biometrics, data encryption, and threat detection powered by artificial intelligence are among the most demanded solutions. However, making all these technologies fully compliant with regulations is a major challenge.
Some regulations require periodic cybersecurity audits, encrypted data storage at the source, or specific data retention times depending on the industry and geographic location. Adapting modular data centers to these requirements demands time, investment, and specialized personnel.
Logistical and Certification Barriers
The prefabricated construction of modular data centers allows for faster deployment. However, securing the necessary permits can take longer than anticipated. Structural safety inspections, environmental assessments, and energy certifications are often part of the process.
In some countries, installing technology infrastructure also requires specific municipal permits. If the project includes renewable energy sources such as solar panels, additional regulatory requirements come into play. Compliance with international standards, such as ISO 27001 (information security management) or Uptime Institute’s Tier certifications, also impacts the design and operation of these centers.
Compatibility Between Modules and Cross-Border Regulations
One of the great advantages of modular data centers is the ability to replicate them across different geographies. However, this strength also brings a major challenge: making sure that modules designed under certain standards are aligned with the widely varying local regulations.
For example, a center installed in Argentina must comply with the Personal Data Protection Law (Law 25.326). At the same time, another in Brazil must meet the requirements of the General Data Protection Law (LGPD). Although both regulations aim to protect privacy, the specific requirements differ.
This diversity forces companies to develop adaptable modules or customize installations based on their final destination. Without proper planning, this can result in delays and increased implementation costs.
Supply Chain and Regulatory Risks
Dependence on specialized components represents another key point. Many systems used in modular data centers are sourced from suppliers operating in different countries, each subject to its own export regulations.
Trade restrictions, tariff changes, or economic sanctions can directly impact the availability of essential equipment. This situation has intensified amid ongoing trade tensions between the United States and China, prompting companies to diversify their supplier bases and strengthen their supply chain logistics.
Strategies to Overcome Regulatory Challenges
The expansion of modular data centers faces regulatory, logistical, and compliance challenges that, if poorly managed, can delay implementation and increase costs. In this environment, Aerodoc positions itself as a key strategic partner, with proven expertise in the international transportation of sensitive technology, pre-compliance customs services, and deep knowledge of local and international regulations.
Aerodoc offers comprehensive solutions for key data center components, including racks, servers, and cooling systems. Through its White Gloves Delivery service, it handles transportation under strict controls, minimizing the risk of damage and delivery delays, vital for technology infrastructures that require specialized handling.
Contact our team of experts to learn more about our services.
Q&A
- What are the main regulatory challenges when implementing modular data centers? Each region enforces its own regulations regarding data storage, privacy, construction, and energy consumption. Modular data centers must be adapted to comply with these requirements, which may involve changes in design, materials, and certification processes. The diversity and, sometimes, contradictions among local regulations complicate infrastructure management and can lead to additional costs if not anticipated.
- How does cybersecurity compliance impact modular data center operations? Modular data centers must integrate advanced cybersecurity measures, including biometric access controls, data encryption, and AI-powered threat detection. However, compliance with regulations requiring periodic audits, encrypted storage at the source, and industry-specific data retention periods demands significant investment in time, resources, and specialized personnel.
- What logistical barriers affect the deployment of modular data centers? While prefabricated construction accelerates deployment, obtaining necessary permits can cause delays. Structural inspections, environmental assessments, energy certifications, and municipal approvals are often required. Additionally, compliance with international standards such as ISO 27001 and Tier certifications impacts both design and operations.
- How do modular data centers adapt to different local regulations? Although modular centers are designed for easy replication across regions, they must be customized to meet local regulations. Differences between data protection laws, such as Argentina’s Law 25,326 and Brazil’s LGPD, require companies to either design adaptable modules or adjust their installations based on the destination, which can increase complexity and costs if not adequately planned.
- What supply chain risks are associated with modular data centers? Many components for modular data centers are sourced globally, exposing projects to risks from trade restrictions, tariff changes, and sanctions. Tensions like those between the United States and China underscore the need to diversify suppliers and enhance supply chain logistics to mitigate disruptions in the availability of critical equipment.
