The “cloud” is a term we’re all familiar with and a “place” most people don’t put too much thought into. But the cloud is actually a network of servers located in real places—data centers—across the country and the globe, accessed via the internet.

These data centers, which house artificial intelligence (AI) and cloud storage servers, are huge buildings full of heat-producing electronics. They require an enormous amount of chilled water piping and HVAC ductwork, which means large amounts of pipe and duct insulation are also needed.

Insulation plays a crucial role in data centers by enhancing cooling efficiency and improving energy efficiency. As the need for data centers continues to increase, the insulation industry is quickly learning about their needs and working to address them.

Massive Amounts of Insulation

“The common trend is that chilled water piping is operating at 60o to 80oF, so the indoor chilled water piping tends to not require as much insulation,” said Matt Kipphut, Project Manager and Estimator for NIA member company Performance Contracting, Inc. “There is a large amount of piping outdoors, with all the chillers on the roof and connections to the chillers. Depending on the size of the data center, we’re talking about tens of thousands of linear feet of pipe outside.”

And much of the piping is not small. Matt Caldwell, President of Caldwell Insulation, an NIA member company in Georgia, said he’s seeing an “extraordinary amount of 30-inch pipe used around the country.”

All that piping (at least outdoors) has to be insulated, which requires a significant amount of product. Kipphut said 2”-thick insulation is common, and the volume needed potentially leads to other difficulties.

“Our biggest challenges are material delivery and storage, and product availability,” said Kipphut. “Our laydown yards are small, and we can’t put multiple storage containers on site, which prevents us from ordering in large quantities. We rely on distributors to help as they can, but sometimes it can really be a rock and a hard place with the schedules.”

Greg Newman, Vice President of Design Build, Mechanical Insulation, at Insulation Midwest in Minnesota, echoed those sentiments about material ordering and storage.

“We have to preorder ahead of time, but then we only have limited spots and can’t store anything inside the buildings,” Newman said. “The construction is also so busy that it’s unreal; and you’ve got to work inside a particular schedule, so it’s difficult.”

For example, the fiber glass insulation industry is experiencing strong demand as more data centers are constructed.

The other piece of the insulation puzzle in data centers is ductwork. Newman said the majority of ducts in data centers range from 40 to 80 inches in diameter, with some even larger. As a result, fiber glass wrap products for insulating air handlers and ducts are also in high demand.

Timing, Location, and Other Considerations

Power is another major consideration for data center construction. The buildings require an enormous amount of electrical power, so its availability sometimes influences the location of new projects.

“These data centers are built on grids, and some of them use so much power that they can’t be on the same grid,” Newman said. “In the Midwest, we have redundant data centers—two of the same on two different grids—for backup purposes.”

The time frame for building data centers varies, though Kipphut said many that he’s worked on take 18 to 24 months.

“Usually, one big building is separated into thirds, in different phases,” Kipphut said. “We might need 6,000 feet of pipe insulation for the first phase, and then a few months later another 6,000 to 7,000. As a contractor, I try to store a reasonable amount of insulation, usually 2-inch thick, to keep it available. With all of these data center builds going on, there’s so much need.”

Kipphut said he’s seen several data center campuses where multiple buildings are grouped together, and that presents other challenges.

“In Arizona, for example, they want to build seven of these, and we’re working on building number two, all pretty close together,” Kipphut said. “Power—and water, in Arizona—are going to be big problems.”

Proper insulation on chilled water piping is crucial in addressing the power issue. It is essential for maintaining energy efficiency, especially in environments like data centers, where temperature control is critical. Inadequate insulation can lead to temperature fluctuations, increasing power consumption and operational costs.

Some key tips for effectively insulating chilled water systems include:

1. Specify the right amount of insulation
   To prevent condensation and maintain consistent water temperatures, it is crucial to use the correct insulation thickness. The insulation must keep its surface temperature above the dew point to avoid moisture accumulation. This is especially important in environments with high relative humidity, where the risk of condensation is greater due to increased vapor drive.
   
2. Use an appropriate vapor retarder
   A vapor retarder is a protective covering applied over insulation to prevent moisture ingress. Common vapor retarder materials for fiber glass insulation include all-service jacketing (ASJ), poly-coated ASJ, and polyvinylidene chloride (PVDC) films. A properly sealed PVC jacket (at all circumferential and longitudinal seams) also can perform as a vapor retarder. To ensure effectiveness of a vapor retarder:
   • Seal all seams with matching vapor retarder tape;
   • Avoid punctures or tears in the jacketing; and
   • Use mastics to seal seams (overlaps) and penetrations, and repair any damage.
   
3. Consider the installation environment
   In high-traffic chilled water system areas, protective jacketing such as metal or PVC should be used to prevent physical damage to insulation and the vapor retarder. Jacketing comes in various colors for aesthetic or coding purposes, and some white PVC jackets also offer UV resistance.
   
4. Choose the right insulation materials
   Pipe insulation is a cost-effective and widely used solution for chilled water systems. Some materials are available in pre-formed, pre-slit formats and with factory-installed vapor retarders. These systems are compatible with additional jacketing for outdoor or exposed environments, enhancing durability and moisture resistance. Options for chilled water systems include fiber glass; cellular glass; elastomeric; and rigid foams including polyisocyanurate (PIR), extruded polystyrene (XPS), and phenolic.

The Insulation Materials Specification Chart, NIA-TIC-101-4/24, created originally for NIA’s training programs, provides end users with physical and material properties of various insulation materials, as specified in ASTM Materials Specifications. This chart, created by NIA’s Technical Information Committee, was born out of a need for an unbiased, easy-to-use selection guide focused on the physical and material properties of different types of insulations. Visit https://tinyurl.com/4zeb96yz to access the chart.

Ongoing Demand

As AI continues to grow, construction of data centers is not likely to slow down soon. If current trends continue, it could be that constraints such as electricity, space, and even mechanical insulation will affect data center growth.