Cost-effective, energy-efficient IMPs can help the data center construction industry keep up with the fast pace of expansion

In the last several years the demand for data centers in the United States has skyrocketed as generative artificial intelligence (AI) and other computing intensive applications require more and more capacity in our increasingly digital-first world.

It’s not a question of if more data centers will be constructed in the short-term, but how fast the new infrastructure can be brought online.

“Global demand for data center capacity could more than triple by 2030,” McKinsey & Company said in October 2024. “The race is on to build sufficient data center capacity to support a massive acceleration in the use of AI. To address the increasing demand, [cloud service providers], which currently own more than half of the world’s AL-ready data center capacity, are rapidly constructing state-of-the-art facilities.”

Investing in the Future: Data Center Construction Funding

The growing demand for data centers has caught President-elect Donal Trump’s eye as he announced in early January 2025, a $20 billion investment for data centers in the U.S. by an Emirati company by billionaire Hussain Sajwani.

“Sajwani’s promised investment feeds into an existing boom for constructing data centers used in the development of artificial intelligence and expansion of cryptocurrency, as well as in other elements of an increasingly digital economy that relies on having greater sources of computer processing power,” reported the Associated Press.

In October 2024, financial company Blackstone called the intersection of digital infrastructure and the need for power “one of the most exciting and critical investment themes of our time.”

Blackstone pointed out that data usage has increased 100 times over the past 15 years and more data has been created in the past three years than in all of history.

“As AI continues to gain momentum, this trend will only accelerate,” said Blackstone. “The growth of data centers is a global phenomenon. We estimate that the US will see over $1 trillion invested in data centers over the next five years, with an additional $1 trillion invested internationally.”

The rapid pace of additional infrastructure needed in the coming decade will require the use of sustainable materials such as insulated metal panels (IMPs), which are emerging as a go-to solution for modern data center construction.

IMPs Could Revolutionize Data Center Construction

Saying that IMPs could revolutionize data center construction is not a stretch as these versatile materials have already been a game changer in the cold storage market.

And the cold storage and data center construction markets share some of the same goals: ease of installation, energy efficiency, thermal performance, air and vapor control, temperature modulation, and durability.

“It’s not enough to quickly assemble a metal building on a concrete slab and add servers. The design and construction of data centers are changing to incorporate increased demand and new trends in the industry, such as the need to be more energy-efficient,” said industry consultant FMI. “Another emerging trend includes advanced exterior building panels, such as insulated metal panels (IMPs). IMPs have been increasingly used in data center construction due to their superior thermal performance, durability and speed of installation. With expedited schedules in this market, products offering a shorter production schedule provide an increasingly attractive option.”

How IMPs Can Speed Up Data Center Construction

The urgency to build data centers as quickly as possible is highlighted by the fact that data center vacancy in the U.S. has fallen to a razor-thin 3 percent and 80 percent of new construction is already pre-leased.

“Demand for artificial intelligence (AI) and cloud data centers surged in the first half of 2024, in both established and emerging markets.” Reported Cushman & Wakefield. “Power availability remains a critical concern, prompting developers to explore extensive geographic areas for substantial power options within the next two to three years. Despite an expanding supply pipeline, demand continues to outpace supply, resulting in consistently declining vacancy rates across the board.”

IMPs can help data center construction bring more infrastructure online quickly because of their ease of installation:

• IMPs are prefabricated, allowing for faster on-site installation compared to traditional building methods.
• The lightweight nature of IMPs makes them easy to handle and install, reducing construction time and labor costs.
• IMPs can be installed in various weather conditions, minimizing construction delays.

“Insulated metal panels (IMPs) are one of only a few types of building product that can provide an entire building enclosure in one prefabricated product,”explains a Metal Construction Association (MCA) white paper.

Cost Savings for IMPs Extends Beyond Installation

Quick installation of IMPs cuts down on labor costs and construction time, but the cost savings for these versatile wall and roof materials extends behind installation.

IMPs are also energy-efficient which leads to reduced cooling expenses, an important attribute as data center environments are becoming increasingly heated due to the requirements of AI infrastructure.

Explained Herbert Radlinger, managing director at NDC-Garbe Data Centers Europe: “AI solutions require significantly more computing power. To meet the demand, servers with faster processors are used. These AI computers offer more computing power in the whitespace, the server room, and in a smaller footprint. But the compression of computing power generates enormous heat. This is why the cooling of the racks also plays a decisive role because heat dissipation is not possible with traditional air cooling. The reason: air can only absorb a certain amount of heat and the new load exceeds its capacity.”

IMPs, with their exceptional insulation properties, make them a powerful tool for enhancing energy efficiency, regulating temperature control inside data centers, and reducing ever-increasing utility bills.

IMPs Offer Key Energy Efficiency Benefits

The superior energy efficiency of IMPs offers data center construction many benefits including:

• Reduced Cooling Needs: Superior insulation significantly decreases HVAC demand, leading to substantial energy savings and lower utility bills.
• Enhanced Thermal Performance: High R-values prevent air leakage and thermal bridging, minimizing energy waste and maintaining consistent indoor temperatures.
• HVAC System Optimization: Reduced cooling loads allow HVAC systems to operate more efficiently, extending equipment lifespan and reducing maintenance costs.
• Passive Design Integration: Effective insulation supports passive cooling strategies, aligning with sustainable building practices.
• Environmental Benefits: Lower energy consumption reduces the building's carbon footprint and decreases greenhouse gas emissions.
• Compliance with Energy Codes: IMPs meet or exceed requirements for programs like LEED and ENERGY STAR, potentially qualifying for sustainability incentives and certifications.

IMPs: Environmental Control, Scalability, Flexibility and Sustainability

Data center construction can also benefit from incorporating IMPs into their projects due to their environmental control, scalability, flexibility, and sustainability:

• Environmental Control: IMPs create an airtight, moisture-resistant envelope, needed for maintaining strict environmental controls in data centers to protect sensitive infrastructure. IMPs also ensure a hygienic environment with their non-porous, easy-to-clean surfaces, and they support hot aisle/cold aisle configuration used in data centers for efficient cooling.
• Scalability and Flexibility: IMPs are available in various sizes, thicknesses, and finishes, allowing for customization to meet specific data center requirements. The modular nature of IMPs allows for easy expansion or modification of existing facilities.
• Sustainability: The durability of IMPs contributes to sustainability with some estimates showing IMPs can last up to 60 years, far beyond other construction materials.

By addressing the need for rapid construction, energy efficiency, cost-effectiveness, environmental control, scalability, and sustainability, IMPs have become an ideal solution for the data center industry.

As the demand for data processing and storage continues to grow, IMPs offer a practical and efficient way to keep pace with expansion while minimizing energy consumption and operational costs.

Contact Green Span Profiles today to learn about how our American-made insulated metal panels can help your next data center construction project be both cost-effective and energy efficient.