LKR Knowledge BaseBy LKR Advisors — a plain-english ledger of Indian business
← AI & Data Centres
Concept #914

E-Houses

How building a data centre's electrical room in a factory hundreds of kilometres away speeds up construction

AI & Data Centres·advanced·2 min read·Updated September 2026

Imagine building an entire electrical panel, wiring and switchgear inside a large steel enclosure at a factory hundreds of kilometres from the actual construction site, testing all of it fully before it ever leaves the factory floor, then simply trucking the whole enclosure to site and bolting it down, rather than pulling every cable and mounting every panel on-site over many months. That enclosure is an E-house, electrical house, a prefabricated, factory-built structure housing a data centre's medium and low-voltage switchgear, transformers and control systems, covered elsewhere on this site, delivered largely plug-and-play.

E-houses sit at the centre of the broader shift toward modular and prefabricated data centre construction, a shift the industry has adopted less by choice than by necessity, with highly modularised projects reported to cut construction schedules by roughly 30 to 50% compared with conventional builds, compressing delivery timelines from around 24-36 months down to 16-20 months, and in some cases cutting on-site electrical assembly time from around fifteen weeks to just two or three.

What makes this genuinely matter, rather than being simply a construction-technique curiosity, is that the actual bottleneck a data centre developer is racing against is almost never the E-house shell itself, it is the years-long queue for the large transformers and switchgear that go inside that shell, both covered elsewhere on this site, meaning an E-house's real value is compressing every part of the timeline that can be compressed, so the equipment sitting in a multi-year order queue is the only remaining constraint rather than one of several.

The global modular data centre market, of which E-houses are one component among power skids, cooling assemblies and white-space modules, is projected to grow from roughly $30 billion in 2024 to nearly $80 billion by the end of the decade, and by 2026 essentially every major hyperscaler has adopted some form of modular construction specifically to reduce risk and accelerate timelines rather than purely to cut cost.

E-HouseModular ConstructionPrefabricated Substations