Edge data centres can play an increasingly vital role in the DC landscape by decentralising computing power, offering lower latency and integrating into urban environments. Deerns opens the debate on transforming existing real estate assets into high performance Edge computing hubs.
As digital transformation accelerates, driven by AI, IoT and 5G technologies, the necessity for data processing closer to the end user has never been more critical. At Deerns, we recognise the potential of Edge data centres as a transformative force in the industry. These facilities align with the future of digital infrastructure by:
- decentralising computing power
- offering lower latency and
- integrating into urban environments.
Why Edge Data Centres?
1. Urban Integration and Land Optimisation:
One of the most significant challenges in the data centre industry today is securing suitable greenfield sites for hyperscale facilities. These massive data centres require vast amounts of land and power, making it increasingly difficult to develop them in densely populated regions. Edge data centres, however, can leverage existing real estate assets, such as underutilised office spaces and industrial buildings, transforming them into high performance computing hubs without the environmental and logistical burden of new construction.
This approach minimises land consumption, preserves green areas and accelerates project timelines by using pre-existing power allocations and infrastructure.
" Edge data centres, therefore, represent an opportunity for urban regeneration by integrating more effectively into the city landscape while providing critical digital infrastructure.
2. Energy Efficiency and Sustainability
Sustainability is at the core of modern data centre development. Hyperscale facilities, while essential for large scale computing and AI training, require vast energy resources and generate significant waste heat. Edge data centres, on the other hand, consume significantly less energy and offer innovative ways to re-purpose heat. For instance, in office complexes, campuses and hospitals, heat generated by these facilities can be directly reused for heating, reducing the need for additional energy intensive heat pumps.
Furthermore, Edge data centres are well suited for modular and prefabricated construction, reducing material waste and ensuring faster deployment. This, together with renewable energy sources and improved power utilisation efficiency (PUE), can significantly lower their environmental footprint while enhancing energy reliability.
3. Regulatory Advantages
The regulatory landscape for data centres varies significantly across regions. Large scale hyperscale facilities often face the same permitting hurdles as traditional power plants due to stringent CO2 emissions regulations. This complicates approvals and extends project timelines. Smaller in scale and often located on existing sites, Edge data centres bypass many of these regulatory challenges, enabling faster development and deployment.
Additionally, as governments look to modernise regulations to support digital infrastructure growth, these facilities present a compelling case for streamlined approvals and incentives for sustainable urban development.
Challenges and Market Adoption
Despite the clear advantages, the market is still maturing and investment in Edge data centres is still overshadowed by the hyperscale sector, where financial returns are more predictable. Many investors focus on large scale projects with established revenue models rather than decentralised, smaller scale deployments.
" As the demand for low latency services and sustainable solutions grows, Edge data centres are expected to gain traction.
Deerns is actively working on optimising designs to make these buildings more cost effective and attractive to investors. To do this, we leverage our expertise in real estate, building performance and energy efficiency to create holistic, future-ready solutions.
A Holistic Approach to Edge Data Centres
At Deerns, our multidisciplinary expertise enables us to offer a comprehensive approach to data centre design and development. Our Building Performance and Façades business units collaborate to optimise heat dissipation, noise control and energy efficiency. Through Computational Fluid Dynamics (CFD) simulations and advanced engineering solutions, we can ensure that Edge data centres are well integrated into urban environments without disrupting local communities.
Our Real Estate business unit further enhances our capability by identifying suitable locations and assessing land reuse potential. This holistic approach allows us to support clients from initial site selection to full commissioning and operations, ensuring that their assets are not only technically advanced but also financially and environmentally sustainable.
With offices in multiple countries, Deerns also benefits from a global network of expertise, allowing teams to share experiences, innovations and best practices across different markets. This international collaboration enables the company to apply proven solutions from one region to another, adapting to diverse regulatory environments and technological advancements.
The Future of Edge data centres
In the next wave of digital infrastructure, we foresee that hyperscalers will continue to handle large scale computational workloads, while Edge data centres will provide the agility and efficiency required for emerging technologies.
Deerns is at the forefront of this evolution. As businesses and governments recognise the strategic benefits of decentralised digital infrastructure, Edge data centres will play an increasingly vital role in enabling a smarter, more connected and sustainable world.
Related thoughts
