  Information processing typically occurs via the composition of modular units,
such as universal logic gates. The benefit of modular information processing,
in contrast to globally integrated information processing, is that complex
global computations are more easily and flexibly implemented via a series of
simpler, localized information processing operations which only control and
change local degrees of freedom. We show that, despite these benefits, there
are unavoidable thermodynamic costs to modularity---costs that arise directly
from the operation of localized processing and that go beyond Landauer's
dissipation bound for erasing information. Integrated computations can achieve
Landauer's bound, however, when they globally coordinate the control of all of
an information reservoir's degrees of freedom. Unfortunately, global
correlations among the information-bearing degrees of freedom are easily lost
by modular implementations. This is costly since such correlations are a
thermodynamic fuel. We quantify the minimum irretrievable dissipation of
modular computations in terms of the difference between the change in global
nonequilibrium free energy, which captures these global correlations, and the
local (marginal) change in nonequilibrium free energy, which bounds modular
work production. This modularity dissipation is proportional to the amount of
additional work required to perform the computational task modularly. It has
immediate consequences for physically embedded transducers, known as
information ratchets. We show how to circumvent modularity dissipation by
designing internal ratchet states that capture the global correlations and
patterns in the ratchet's information reservoir. Designed in this way,
information ratchets match the optimum thermodynamic efficiency of globally
integrated computations.
