Alibaba said it has cut the construction period for large artificial intelligence data centres to 100 days by applying its own modular design, while also reducing construction costs by 10 percent.

On Aug. 11, the South China Morning Post reported that China Securities Journal, a Chinese state media outlet, said Alibaba Cloud had shortened delivery times for large AI data centres to as little as 100 days with its modular architecture, Cube 5.0. The typical construction period in China is 6 to 12 months, while in the United States it is 12 to 18 months.

The key is factory pre-fabrication. Previously, power, cooling and IT systems were installed sequentially on site. In modular data centres, infrastructure is divided into individual components that are built simultaneously in factories and then shipped to site in container form to be assembled like stacked blocks. Alibaba Cloud explained that this method reduces reliance on on-site processes and allows large-scale equipment to be deployed faster.

Alibaba Cloud also projected that it will more than double production efficiency this year. Efficiency is measured based on the volume of modular data centres delivered within a set period. With demand for AI infrastructure rising rapidly, it aims to increase both build speed and supply volume.

On the technology side, it has greatly expanded the scope of modularisation. Cube 5.0, unveiled in 2024, raised the overall modularisation ratio of five core systems — power supply, cooling, security, intelligent management and fire protection — from 30 percent to 90 percent in the latest version.

Deployment sites have already emerged. Alibaba piloted the architecture in Ulanqab in China's Inner Mongolia Autonomous Region and Zhongwei in the Ningxia Hui Autonomous Region. It also obtained certification to expand into European and Southeast Asian markets. This suggests a shift from domestic demonstrations in China to an overseas expansion stage.

Alibaba is also expanding global data centre investment. In line with an AI capital expenditure plan of 380 billion yuan ($56.3 billion) presented last year, it is accelerating the expansion of data centres worldwide. It recently added an overseas base by opening its first data centre in France.

These moves are not unique to Alibaba. As the global AI boom drives a surge in data centre demand, major technology companies are focusing on modular approaches that can be expanded more quickly. Google earlier introduced the concept of modular data centres, and Microsoft and Meta are also using pre-fabricated modules to expand cloud and AI infrastructure.

Ultimately, the focus of competition is shifting to who can secure AI infrastructure faster. That means modular data centres are becoming a key tool in the race to invest in AI infrastructure, beyond being a construction method.